Hong Kong’s luxury home sales sink to five-year low in September as caution prevails amid protests

Sales of luxury homes fell to a five-year low last month as Hong Kong’s property market continued to reel from the ongoing civil unrest, extending a decline that started in June.

Only 93 new and used homes worth more than HK$20 million (US$2.55 million) each were sold, totalling HK$4.68 billion in September, according to figures compiled by Centaline Property Agency.

Sales dropped to the lowest since June 2014 when they hit HK$3.64 billion. They have plummeted 78.4 per cent from HK$21.62 billion in May and were 63.3 per cent lower compared to HK$12.76 billion in September 2018.

The number of transactions, meanwhile, was the lowest since 72 deals were finalised in February 2016. Transactions have plunged 79.4 per cent from 451 in May and were 68.2 per cent lower compared to 292 in September last year.

“I think it is because of the recent political situation, so people would like to wait and see,” said Patrick Chau, senior director and head of residential investment at Savills. “Those [interested in homes worth] between HK$20 million and HK$100 million really count on mortgage ... These people [tend to be] more conservative.”

Wong Leung-sing, senior associate director of research at Centaline, said that Chief Executive Carrie Lam Cheng Yuet-ngor’s move to relax mortgage restrictions in her policy address last week was aimed at first-time buyers and was unlikely to benefit the segment.