Hongkongers are increasingly opting for more expensive homes as Covid-19 pandemic recedes

Homebuyers in Hong Kong are increasingly opting for more expensive properties, as the city’s Covid-19 outbreak is brought under control.

The proportion of transactions involving mid to high-priced properties rose across the board in March, according to Land Registry data. Of these, properties worth between HK$10 million (US$1.3 million) and HK$20 million rose the most, rising 1.4 percentage points month on month to 13 per cent.

“More [homebuyers] are looking to upgrade to bigger flats in recent months, pushing up demand for mid to high-priced properties,” said Derek Chan, head of research at Ricacorp Properties. “Additionally, as the pandemic continues to ease, there is a fear of greater competition after the border with mainland China reopens”, which would lead to more expensive properties later, he added.

An increase in demand for more expensive homes – despite the city’s worst recession on record and rising unemployment – could lead to an upswing in the market and push up prices, analysts said, as the pandemic eases.

If the city is spared a fifth wave of the pandemic, home prices could rise further, said Martin Wong, head of research and consultancy in Greater China at Knight Frank. “It is a signal that the market is turning a corner,” he said.

For instance, a two-bedroom 531 sq ft flat in Ocean Supreme in Tsuen Wan sold for HK$11.04 million this month, the highest price for such a flat in the project, according to Centaline Property Agency. A similar flat sold for HK$9.58 million in October last year, Centaline data showed.