Hong Kong home sales up 34.3% to 6,125 units in February

Primary sales surged 165% to 1,553 units.

Knight Frank reveals purchasing sentiment in the residential market improved in February, as the fourth wave of COVID-19 cases slightly receded. Bolstered by the soaring stock market and the prospect of economic recovery, underpinned by the citywide vaccination programme, sales activity was robust during the month.

According to the Land Registry, transaction volume increased 34.3% MoM to 6,125 units, of which primary sales accounted for 1,553 cases, a surge of 165% MoM.

Here’s more from Knight Frank:

Despite the lingering economic uncertainty, top-of-the-line residential assets continued to draw interest from high net-worth buyers. In February, a 3,378-sq ft high-floor unit at CK Asset Holdings’ 21 Borrett Road in Mid-Levels Central was sold for a record-breaking HK$459.4 million or HK$136,000 per sq ft. The flat is touted as Asia’s most expensive residence in terms of unit price.

The leasing market was also vibrant and has proven resilient despite the contracting economy. There were more enquiries from prospective tenants from overseas who plan to work in Hong Kong when the COVID-19 situation stabilises. During the month, a 10,804-sq ft house in Wharf Holdings’ 11 Plantation Road on The Peak, was leased at a monthly rent of HK$1,350,000 or HK$125 per sq ft, which is among the highest recorded rents ever for a home in Hong Kong.

The recent significant transactions in the ultra-prime segment indicate that the luxury home market is turning the corner. Looking ahead, we expect developers to be active in launching new project sales, given strong interest from high-end buyers. But the downside risk has not dissipated amid the protracted pandemic. Fears of a fifth wave of COVID-19 infections may pose further uncertainty to the already hard-hit economy. If Hong Kong has to go back to tighter social-distancing rules, sales activity and purchase sentiment in the residential market will inevitably be affected.