Hong Kong residential sales surge 68% to 5,367 in March

First-hand sales more than doubled.

According to a Knight Frank report, Hong Kong’s residential property market has shown a significant uptick in transaction volume following the government’s announcement to reduce the stamp duty on the sale of flats worth up to HK$4 million in the Budget.

“Total residential sales surged to 5,367 in March, marking a 68% MoM increase, with first-hand sales rising significantly to 2,229 transactions, up 148% MoM. Nonetheless, overall residential home prices fell slightly by 0.9% MoM in February, reaching their lowest level in over eight years after three consecutive months of decline,” the report said.

Here’s more from Knight Frank:

Bolstered by the reduced stamp duty, the first-hand market recorded brisk sales in March. Three new developments launched in March, including Eight Southpark in Kowloon City, Yoho West Parkside in Tin Shui Wai and Le Mont in Tai Po. With a total of 1,923 units, 1,202 units were successfully sold, representing 62.5% of the inventory. Notably, 82% of Eight SouthPark were sold at an average price of HK$18,814 sq ft, 10% cheaper than comparable properties in the same neighbourhood and in Kai Tak. Developers have been more active in offering discounts to attract potential buyers.

The luxury property market activity in March was driven by a significant number of distressed units, providing bottom-fishing opportunities for cashrich buyers. A total of 18 transactions for properties exceeding HK$78 million (US$10 million) were recorded in March, reflecting a 5.9% MoM increase. The total consideration reached HK$2.75 billion, marking a 49% MoM increase. Notably, a 3,202-sq-ft- house at 31 Barker Road, The Peak, was sold for HK$288 million, or HK$89,944 per sq ft.

The leasing market continued to outperform the sales market, with the rental index for February rising 0.3% MoM, marking its third consecutive months increase and reaching a five-year high. Factors supporting the leasing market include increased demand from professionals and students from Chinese mainland and overseas. Heightened global economic uncertainty has also prompted more buyers to delay flat purchases and turn to the leasing market.

Looking ahead, the escalating US tariff policy is negatively impacting homebuyer sentiment in Hong Kong. Amid macroeconomic uncertainties and currency depreciation risks, buyers are likely to be more cautious, potentially delaying purchases. The erratic stock market has also dampened investment confidence. Consequently, both investors and end-users are expected to adopt a wait-and-see approach amid high uncertainty. We expect the overall home prices to drop by 2-3% in the first half of 2025.