Hong Kong residential sales down 6.3% to 3,875 units in September
The primary market sales also declined 8.2%.
Owing to uncertain market conditions and concern about interest rate hikes, Knight Frank says a “wait-and-see” attitude is prevalent among buyers and homeowners.
Sales activity in both primary and secondary markets recorded a drop of 8.2% and 5.2% MoM, respectively, because of weak market sentiment. In total, 3,875 transactions were recorded in the residential market, edging down 6.3% MoM, according to data from the Land Registry.
Here's more from Knight Frank:
Hong Kong’s overall stamp duty revenue from home sales recorded 202 cases in September, reaching a new two-and-a-half year low, according to the Inland Revenue Department. The number of cases involving Buyer’s Stamp Duty (BSD) was the lowest since December 2020, reflecting low demand from non-local buyers of Hong Kong property.
Amid demand shrinkage, the luxury market was quiet, with low transaction volume, and the number of enquiries and home viewings slowed down at the same time. One of the few luxury transactions during the month was a deal for a 2,454-sq-ft house at Springfield Gardens in Shouson Hill for HK$118 million. In the mass market, with homebuyer confidence ebbing, more homes were sold at a discount or under market price. Some property owners were desperate to cash in by selling their units, so prices remained under pressure.
The leasing market was stable, with some major deals recorded in Central Mid-Levels. Demand for small- to medium-sized units was solid, driven mainly by university students and local demand.
Despite growing uncertainty, two residential sites were sold recently. CK Asset Holdings acquired a site on Castle Peak Road, Tai Lam, in Tuen Mun for HK$4.6 billion, showing developers’ confidence in the long-term prospects for Hong Kong’s property market.
Hong Kong Chief Executive John Lee Ka-chiu delivered his maiden policy address on 19th October and unveiled some initiatives to attract foreign enterprises and talent. We expect the various initiatives to increase the flow of overseas talent to Hong Kong, which will support demand in the residential leasing market in both the short and long term.