Hong Kong residential sales drop 22.2% to 4,826 units in June

There were 1,382 primary sales during the month. 

Sales activity in Hong Kong’s residential market slowed down in June. Knight Frank reveals there were a total of 4,826 transactions recorded, dropping 22.2% MoM. Primary sales supported overall market sentiment, with 1,382 cases recorded during the month. 

Here’s more from Knight Frank:

Affected by the pandemic, in 1H22, Hong Kong’s overall stamp duty revenue from home sales fell to HK$3.67 billion, dropping by 52% compared to that in 2H21, according to Inland Revenue Department data. June sales revenue figures dropped as well, tumbling by 33% to HK$544.7 million, and cases fell by more than 10%.

Although sales volume was low in the luxury market, there were a handful of transactions that set record prices for the year. A 8,032-sq-ft-house at No.15 Shouson, Deep Water Bay, developed by Emperor International, CC Land, Mingfa Group and CSI Properties in Shouson Hill, was sold for HK$870.2 million or HK$108,347 per sq ft by tender, showing that Hong Kong’s super prime properties remain sought-after by wealthy buyers despite the interest rate hike cycle and economic uncertainty. Another notable transaction was a 6,867 sq-ft penthouse at Dukes Place in Jardine’s Lookout, which was sold for HK$680 million, or HK$99,000 per sq ft.

These recent luxury property transactions have helped bolster buyer confidence in the luxury market. On the leasing front, the luxury segment was relatively quiet, but there were more enquiries and home viewing activities in the mass market. Leasing activity was more active for small and medium-sized units. 

Even though the interest rate hikes are within market expectations, some potential homebuyers choose to adopt a wait-and-see approach amid market uncertainty. Going forward, if the border control and other restrictions are further relaxed, demand from expatriates and Mainland investors is expected to return to the market. As Hong Kong’s economy gradually returns to normal, we expect the high-end residential market to follow.