Hong Kong’s new-homes market starting to pick up

Sales of existing homes fell in August, as new mass-market projects tempted buyers. The total number of transactions fell by 14.5% month-on-month.

In the new homes market activity started to pick up, with more mass-market projects becoming available for sale or in the pipeline, according to Knight Frank’s recently-released Hong Kong Monthly Market Update.

With various cooling policies in place and market sentiment remaining cautious, we believe there will be a drop in activity in both the new-build and resale markets over the remainder of the year. In 2013, the total number of residential sales is expected to fall about 20%, with mass residential prices dropping less than 5% and prices in the more resilient luxury sector falling less than 3% in the rest of the year.

On the leasing front, there was a shift in demand from ‘super luxury’ to ‘mid-range luxury’ units, probably due to the lowering of accommodation allowances for staff in the finance sector and greater cost-awareness among tenants, of them many were shifting to personal leases.

The leasing market was less active, despite it being the traditional peak summer season. Luxury residential rents dropped 2.7% in August, the biggest dip since August 2009.

Follow this link for the full Hong Kong Monthly Market Update.

Showing 5 comments

  1. Dubai Realty

    #

    The investors still have a wait n watch attitude, there will a steady rise in the market, however mid priced properties will be in demand.

  2. Bhat

    #

    Creating local demand for mid priced property can keep the market stable and investors interest will remain intact.

  3. Sam

    #

    I agree with your comment(Bhat) the market has not to be dependent only on property investors but local demand is vital.

  4. Dubai-Broker

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    Luxury residential rents dropped by 2.7% as rent and sales price don’t follow the same trends, there are different factors that come into play to effect sale price and lease price.

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