Hong Kong secondary residential transactions hit record highs in over 8 years

Transaction volume increased 6.2% to 6,258 units in April.

Supported by pent-up end-user demand, purchase momentum persisted in April. According to the Land Registry, the residential market recorded 7,325 transactions during the month, for a total consideration of HK$ 71.6 billion. Knight Frank says transaction volume in the secondary market continued to reach new heights, rising 6.2% MoM to 6,258, the highest in the past 102 months. The latest official statistics show that average residential prices edged up by 0.8% MoM in March. 

Here’s more from Knight Frank:

In the primary market, newly launched projects drew interest, indicated by the massive oversubscription of South Land, atop the Wong Chuk Hang MTR Station, by Road King Infrastructure Limited, showing strong purchase sentiment. All units in the first two batches were sold. Seven units in the second batch were sold to a single group buyer, for about HK$200 million. 

The luxury market remained resilient despite ongoing concern about the local economic recovery. A major transaction was closed for a 5,630-sq-ft house at 90 Repulse Bay Road in Island South, which was sold for HK$467.3 million or HK$83,002 per sq ft. The last unit available at The Masterpiece in Tsim Sha Tsui was sold for HK$210 million or HK$70,731 per sq ft. 

On the leasing front, demand was still driven by local moves amid travel restrictions, and landlords remained flexible to attract potential tenants. Looking forward, given the stabilisation of the COVID-19 situation in Hong Kong, along with the rising vaccination rate in the city, potential home buyers are expected to be optimistic about the market outlook, leading to higher transaction volume, in particular in the primary market.