, Hong Kong

Hong Kong luxury residential transactions slump 39% to 618 in Q4

These are for transactions above HK$20 million.

Hong Kong’s luxury residential market had a lacklustre final quarter of 2021 due to a combination of factors: border closures prevented deep-pocketed individuals from Mainland from travelling to Hong Kong for property viewings; stock market turbulence; and Mainland policies restricted PRC interest in investing into the local luxury property market.

According to Savills, luxury price growth moderated in Q4/2021 across most districts as a result. For 2021 as a whole, townhouse prices increased by 5%, while luxury prices on Hong Kong Island, Kowloon and the New Territories rose by 10%, 4% and 6% respectively. 

Here’s more from Savills:

Luxury volumes declined dramatically in Q4, with 618 transactions (HK$20m or above) recorded, 39% lower than in Q3. In the HK$20m to HK$50m price bracket, transaction volume declined by 41% QoQ, representing weakening demand in this entry level, with most potential buyers more vulnerable to stock market turbulence and deteriorating job prospects. 

Nevertheless, for the more affluent groups who are less affected by economic fundamentals, their buying appetite has been less affected, with transaction volumes of HK$100m or above only declining by 20% over the same period. 

Though there were no mega deals (HK$1 billion or above) recorded over the quarter, the sale of two redevelopable properties (63-67 Robinson Road and 89-93 Tai Hang Road) reflected developers’ appetite for redevelopment opportunities. Elsewhere, a single number lot house at 38 Coombe Road on the Peak was sold for around HK$120,000 per sq ft saleable, while a few other houses in Southside and Mid-Levels were sold for close to HK$100,000 per sq ft saleable, showing that these rare and prestigious houses are still highly sought after.

 

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