Property consultancy Colliers predicted on Thursday that the city's property investment will rebound by 37 per cent this year to HK$50 billion.

The firm noted that only 65 major deals were completed last year, resulting in a total investment volume of HK$37 billion, the lowest in 15 years.

Colliers said the decline was due to high interest rates and a slower-than-expected economic recovery, which negatively affected investor sentiment.

Releasing the firm's market outlook report, its co-head of capital markets and investment services, Thomas Chak, pointed to government efforts to boost investment sentiment.

“While the market expects the U.S. Federal Funds interest rate to stabilise in the next six to nine months, coupled with the government’s initiatives on ‘Headquarters Economy’ and the Capital Investment Entrant Scheme, this will likely improve investment sentiment and re-establish Hong Kong as an investment destination,” he explained.

Colliers' forecast differs from an earlier study by commercial property firm CBRE, which suggested that uncertain demand could limit the chances of a significant increase in investment.