Why April home sales were lacklustre in Hong Kong  | Real Estate Asia
, Hong Kong

Why April home sales were lacklustre in Hong Kong 

Primary sales declined by 13.3% during the month.

High interest rates have begun to weigh on market sentiment and challenge affordability in Hong Kong according to Knight Frank, evidenced by a significant reduction in transactions in April after the upbeat market in March. 

Residential transactions in April dropped by 31.5% MoM to 4,583, according to data from the Land Registry. 

Here’s more from Knight Frank:

Sales in primary and secondary markets fell by 13.3% and 38.1% MoM, respectively. The slowdown in home sales was also due to the large amount of outbound travel by Hong Kong residents over the long Easter and Ching Ming holiday. 

However, luxury market continued its resilient performance. There were more enquiries by Chinese mainland buyers, which translated into more big-ticket transactions. During the month, a 7,042-sq-ft house at Mount Nicholson at The Peak, was sold for HK$577 million or 81,400 per sq ft; and a 4,016-sq-ft house at Central Peak in Mid-Levels East, was sold for HK$409.6 million or HK$102,000 per sq ft. 

Things were relatively quiet on the luxury leasing front. There are more listings in the market, particularly units with monthly rents between HK$100,000 and HK$200,000, which is expected to exert some downward pressure on rents and lead to longer flat listing periods. Notable transactions during the month include a 2,090-sq-ft unit at Ultima in Ho Man Tin, which was leased for HK$170,000 per month or HK$81 per sq ft. 

In the near term, we expect primary projects to continue to draw attention, as developers will continue their aggressive sales approach to attract potential buyers. Factors such as the high interest rate environment and the increasing number of new flats will add pressure to home prices, and housing demand is likely to be hobbled by the rising financing costs for some time. 

However, supported by the inflow of overseas professionals and talent under the government’s advocacy, we expect both the residential sales and leasing markets to show more obvious improvement in the second half of 2023. 

 

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.

Event News

Event News

Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.
Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.