Hong Kong’s November residential sales hit highest levels since April

Total sales from 6,298 transactions hit HK$57.3 billion in November.

According to a Knight Frank report, thanks to interest rate cuts and relaxed mortgage rules announced in the Policy Address, Hong Kong home prices saw an end to a five-month downward trend.

The housing price index rose by 0.6% MoM in November, narrowing the cumulative decline for the first ten months of the year to 6.8%.

Here’s more from Knight Frank:

According to Land Registry data, November recorded total residential sale considerations of HK$57.3 billion, with 6,298 transactions. This marks a significant MoM surge of over 30% in value and 50% in volume, reaching the highest levels since April, after the government’s removal of demand curbs in February.

The first-hand market thrived, with a total 2,494 transactions, a 55% MoM increase, driven primarily by mainland Chinese buyers pursuing long-term leasing investment strategies. Kai Tak has emerged as a key area, with some buyers purchasing more than 20 new flats in developments such as Double Coast 1 and Twin Victoria.

Luxury homes also saw increased market activity. A notable transaction was the sale of 45 Tai Tam Road in the Southern, a 4,778-sq-ft House, for HK$303 million (approximately HK$73,446 per sq ft), marking the first sale in this development in nearly three years. Meanwhile, according to market source, some luxury properties are offering significant negotiation room, with Estoril Court in Mid-Levels Central selling a 2,888-sq-ft high-floor unit for HK$78 million (about $27,008 per sq ft), down from an initial listing of HK$98 million over six months ago.

In the leasing market, home rents have retreated by 0.3%, marking their first decline since February. However, we have observed that some foreign professionals from international firms are planning to relocate back to Hong Kong with their families, seeking welldecorated flats with monthly rents ranging from HK$70,000 to HK$120,000.

Wong Chuk Hang and Tseung Kwan O appeared to be more sought-after than before among expatriates. We expect the leasing market to remain robust, supported by demand from talent schemes and the high-income groups, with mass residential rents projected to rise by 3-5%, potentially reaching record levels.

Looking ahead, we project that the Hong Kong property market will remain largely stable, driven by a recovering economy, low unemployment rates, and falling interest rates. We expect developers to expedite unloading of unsold inventory and launching new projects, which should boost market activity in 2025. Home prices may potentially rise by up by 5%, with transactions expected to reach 55,000-58,000 units.