Hong Kong residential sales down 23.9% to 3,671 units in July | Real Estate Asia
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Hong Kong residential sales down 23.9% to 3,671 units in July

The overall stamp duty revenue is at a 19-month low.

The interest rate hike and weak market sentiment took its toll on Hong Kong residential sales. According to the Land Registry, a total of 3,671 residential sales were recorded in July, down 23.9% MoM. 

Knight Frank also says Hong Kong’s overall stamp duty revenue from home sales reached a 19-month low of 212 cases in July, according to Inland Revenue Department data. Of these, the number of cases involving Buyer’s Stamp Duty (BSD) plunged 47% MoM, reflecting a notable drop in demand from non-local buyers of Hong Kong property. 

Here’s more from Knight Frank:

Supported by the low starting prices of new projects offered by developers, purchase momentum in the primary market persisted. The first batch of Henderson Land’s One Innovale – Archway, in Fanling, received about 7,800 tickets in total and was oversubscribed by 23 times. All 317 units were sold on the first day of sale. However, purchase confidence was weak among secondary homebuyers, and some property owners were desperate to cash in by selling their units, exerting further pressure on home prices. 

The leasing market was stable, with little movement, and continued to be supported primarily by existing demand. Notable transactions included a 5,342-sq-ft-house at 84 Peak Road at The Peak, which was rented for HK$480,000 per month or HK$90 per sq ft. 

As at the end of July, a total of 41 residential projects with 20,222 units had been pending presale approval. Even though the figure dropped to a seven-month low, primary projects are expected to continue to draw market attention in the coming months. Developers may speed up new project launches before any further increases in local interest rates.

Looking ahead, home prices are likely to come under more pressure, as the headwinds of rising interest rates take a firmer hold. While primary residential prices should remain firm, secondary mass residential prices are forecast to experience a gradual downward adjustment of 3% to 5% in full-year 2022.

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