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Hong Kong property
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Hong Kong’s new home sales surge to 13-month high in June as developers price projects aggressively to attract buyers

  • New flat sales surge 92 per cent month on month to 2,136 units in June, government data shows
  • Transaction value increases for the fifth consecutive month to US$9.1 billion

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Investors line up to buy flats in phase two of Wetland Seasons Park on June 6, 2020. Sun Hung Kai Properties sold 646 units in the project last month. Photo: Jonathan Wong
Sandy Li
Sales of new flats in Hong Kong jumped to a 13-month high in June as developers stepped up marketing efforts and offered steeper discounts to woo buyers at a time of escalating US-China tensions and uncertainties over the coronavirus pandemic.

New home sales surged 92 per cent month on month to 2,136 units in June, short of the 2,314 units sold in May 2019, according to Land Registry data on Friday. The value of transactions rose for the fifth consecutive month to HK$70.59 billion (US$9.1 billion), which was also a 13-month high.

But market watchers believe the trend may not be sustained amid growing uncertainties over the impact of the recently introduced national security law.
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“The impact of the law on US-China relations and the reaction of the local community has to be observed for some time,” said Derek Chan, head of research at Ricacorp Property. “We do not rule out the possibility of some buyers taking a cautious approach.”

Chan added that new flat sales were unlikely to exceed the 2,000 level in July as he anticipates developers to slow down the marketing of new projects, while used-home sales would remain flat.

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In June, Sun Hung Kai Properties’ Wetland Seasons Park phase two was the most popular new project, with 646 transactions registered.
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