Hong Kong primary residential sales slump 28.6% to 1,081 units in January

Primary sales slumped 28.6% to 1,081 units.

There was an abrupt market slowdown in both primary and secondary residential sectors in Hong Kong due to the fifth wave of the pandemic. According to Knight Frank, there were 4,275 residential transactions worth HK$43.4b recorded in January, reflecting a 16.9% drop MoM in the primary market and 10.5% drop in the secondary market. Primary sales slipped 28.6% MoM to 1,081 because of a limited number of newly launched projects before Lunar New Year. 

Here’s more from Knight Frank:

In the mass market, both property owners and potential buyers turned cautious, putting sales and purchase plans on hold, leading to a sharp fall in the number of enquiries and unit views. In the buyers’ market, a small number of sellers were desperate and cut prices substantially to sell their properties, resulting in some isolated unexpectedly low-price transactions in blue-chip estates. 

Despite this, unique and exclusive luxury properties were still sought-after by wealthy buyers. Notable transactions in January include a 3,548-sq-ft-unit at 8 Deep Water Bay Drive in Deep Water Bay, which sold for HK$393.2 million; and a unit at University Heights in Mid-Levels West, which sold for HK$258 million or HK$84,358 per sq ft.

Likewise, in the land sale market, a premium residential site received an enthusiastic response from developers. Local developer SEA Holdings won the luxury residential site in Repulse Bay for HK$1.19 billion, or an accommodation value of about HK$62,352 per sq ft. The unit price was the highest-ever for land sold through government tender, breaking the record of HK$50,010 set by a consortium led by Wharf Holdings for a site on The Peak in February last year. This demonstrates developers’ confidence in the outlook for the luxury residential market in Hong Kong.

Because of the worsening fifth wave of the pandemic and tightened social distancing restrictions, developers will likely delay or reschedule their launch plans for new projects. Overall residential market sentiment and activity are expected to remain inactive in the near term.