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


    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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