As coronavirus makes work from home the new normal, Hong Kong homebuyers favour New Territories, study shows

The total transactions for homes in the New Territories amounted to HK$174 billion in the first seven months of the year, 6.1 per cent higher than the HK$164 billion recorded on Hong Kong Island and Kowloon

Coronavirus seen as one of the reasons for homebuyers’ shift to bigger homes and open spaces in outlying areas of cities such as Hong Kong, Singapore and New York

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In Hong Kong, the total transaction value of homes in the New Territories in the first seven months outpaced the central areas of the city for the first time since 2000. Photo: AP Photo

Published: 11:00am, 12 Aug 2020Updated: 7:43pm, 13 Aug 2020

The coronavirus pandemic is causing a shift in home buying preferences in Hong Kong, with demand shifting to outlying areas away from densely populated downtown districts, according to a study by US consumer research company ValueChampion.

In Hong Kong, the total transaction value of homes in the New Territories in the first seven months outpaced the central areas of the city for the first time since 2000, the study showed.

The central areas – defined as Hong Kong Island and Kowloon – saw the biggest drop of up to 60 per cent in prices from the market peak in October 2019, compared to an 18.9 per cent growth in the outer New Territories in the same period.

“Our research indicates that people might actually be moving away from or at least showing less interest in densely populated areas, in favour of moving into outer districts,” ValueChampion’s research analyst Jacob Weiss said.

Similar patterns also emerged in other major financial centres of Singapore and New York City, according to the New York-based company.

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