Hong Kong primary residential transactions surge 172% in September

There were a total of 1,926 transactions worth HK$21.3 billion.

Hong Kong’s residential market was stable in September as local homebuyers drove demand. According to the Land Registry, 5,844 transactions were recorded in the residential market, up 5.4% MoM. 

Knight Frank says the primary market outperformed due to brisk sales of new projects. Transaction volume surged 172% MoM to 1,926 in September, for a total consideration of HK$21.3 billion. Newly launched projects continued to draw interest, indicated by the massive oversubscription and selling-out of units in The Arles in Fo Tan, by Centralcon Properties, and the Mangrove in Hung Hom, by Kwai Hung Group. 

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However, transaction activity in the luxury market slowed down, with fewer enquiries and flat inspections during the month. Uncertainty in the local stock market and some negative economic factors in the Chinese Mainland curbed sentiment among potential buyers, leading to a wait-and-see attitude. Nonetheless, there were a few significant transactions recorded during the month, including a 4,214-sq-ft unit at 8 Deep Water Bay Drive in Island South, which was sold for HK$450 million, or HK$106,787 per sq ft; and a 2,316-sq-ft unit at 21 Borrett Road in Mid-Levels West which was sold for HK$185 million, or HK$79,879 per sq ft. 

On the leasing front, since the quarantine and travel restrictions remained in place, there were fewer arrivals of expats and their families, and leasing activity became less active. Notable transactions included a 4,853-sq-ft duplex unit at 115 Repulse Bay Road in Repulse Bay, which was leased for HK$300,000 per month, or HK$62 per sq ft.

As home prices are fluctuating around their historical high, and up to 10,000 new units could be launched in the next one to two quarters, some homebuyers will hold out for better options. With the prospect of massive housing supply in the Northern Metropolis, revealed in the latest Policy Address, the pace of home purchases in some areas may slow down slightly, as buyers and sellers have divergent views on valuing the properties in the short term.