Private Credit Steps In as Hong Kong Property Market Shifts

As the banking giants retreat from commercial lending in Hong Kong, a new class of lender is stepping forward. Private credit firms are rushing to support deals that banks just can’t touch. Many investors are still watching from the sidelines, but those already positioned in the private credit investment market are reaping the rewards.

Hong Kong’s property sector, long dominated by bank financing, is facing an inflection point. Tighter regulation, rising interest rates and a changing risk appetite have created a funding gap. But where institutions are hesitating, private credit firms are swooping in.

At Balqis Capital, we believe this shift is not just a blip, it's a structural opportunity. We’ve seen a surge in demand from borrowers needing flexible terms and fast access to capital. And we’ve matched that with rising interest from investors hungry for yield, stability and security.

“We’re seeing a fundamental rebalancing in the credit landscape,” says Alan Graham, UAE Director of Balqis Capital. “Hong Kong is a case study in how private credit is becoming the lender of choice, not the lender of last resort.”

Why Banks Are Pulling Back

Hong Kong’s real estate sector has historically relied on major banks for project finance and refinancing. But a combination of global banking caution and local economic pressure has changed the rules. Banks are now slower to lend, more conservative in valuations and subject to tighter controls.

This shift has left developers, asset owners and mid-market players with few places to turn unless they look beyond the banks.

The Rise of Private Credit

Private credit, which is non-bank lending from institutional investors, funds or family offices, is stepping into the breach. Deals are now being struck faster, with more flexible structures and less red tape.

And while that agility helps borrowers, it also benefits investors. Private credit often comes with higher interest rates and tighter covenants, giving investors stronger downside protection and better returns.

At Balqis Capital, we’re at the forefront of sourcing, structuring and managing these deals. Our due diligence process is rigorous, and our network across the Gulf and Asia gives us first-mover advantage in key markets like Hong Kong, Singapore, and the UAE.

The Balqis Capital Bond: Direct Exposure to Private Credit

For qualified investors, Balqis Capital offers a unique entry point into this evolving market: the Balqis Capital Bond. This fixed income bond earns a 10.25% per annum fixed return for investors. This product is designed to give investors direct access to our portfolio of private credit opportunities.

Our bond offers consistent income, fixed terms and is backed by a diversified pool of secured lending assets, making it a powerful alternative to low-yield traditional bonds and volatile equity investments.

“The Balqis Capital Bond gives investors the chance to benefit from exactly the kinds of deals banks are missing,” says Alan Graham. “It’s not about higher risk, it’s about being earlier, faster and smarter.”

Why Now?

Private credit isn’t just having a moment, it’s gaining momentum. As interest rates stabilise and real estate markets find their footing, private lenders with capital on hand will be the ones calling the shots.

If youre an investor looking for yield without unnecessary exposure to market swings, this is the time to act.

Interested in learning more about private credit?

Speak to our team about how the Balqis Capital Bond can help diversify your portfolio and put your capital to work in one of the world’s most dynamic property markets. You can email to ask for further information or to arrange a call: projects@balqiscapital.com.