Property purchases in Hong Kong rise to US$38.2 billion, a 21-year high for first five months
Prices of used homes, which have risen for 24 consecutive months, behind surge, says brokerage Midland Realty
The frenetic buying of homes, offices and car parks has lifted the total spend on property to HK$300.2 billion (US$38.2 billion) in less than five months this year, the highest level in the past 21 years, according to Hong Kong brokerage Midland Realty.
The record for the first five months – HK$402.1 billion – was set in 1997, but analysts expect total property transaction values to set a new record in 2018, as prices rise sky high.
The prices of used homes in Hong Kong have now risen for 24 consecutive months, to a record high, with most new projects selling out in the first few hours on launch day.
On Wednesday, Midland Realty said sales of residential properties, including used and new homes, amounted to HK$237 billion, or 79 per cent of the total, while the sales of non-residential properties amounted to HK$60.4 billion.
The total transaction value of used homes had risen by 20.5 per cent to HK$159.2 billion as of May 21, said Cheung.
The average price for used homes stood at HK$7.7 million during the period, up 11 per cent from HK$6.94 million for the whole of 2017, she said.