Hongkongers spent a record US$4.5 billion to buy lived-in subsidised homes amid soaring private flat prices
- The transaction value of lived-in flats under the Home Ownership Scheme exceeded 2020’s US$3.34 billion as private home prices soar in Hong Kong
- The easing of the mortgage lending policy for flats below HK$10 million for first-time buyers has also contributed to the rise
Hong Kong sales of lived-in subsidised homes rose to a record HK$34.9 billion (US$4.5 billion) for the first 11 months, as buyers rush for cheaper alternatives amid a surge in private home prices that have pushed them beyond general affordability.
The transaction value of lived-in flats under the Home Ownership Scheme (HOS) has exceeded 2020’s HK$26.05 billion, according to Centaline Property Agency. The total number of deals in this period, at 6,530, was the highest since 1996, which saw 6,520 transactions.
The most expensive HOS flat transaction this year came last month, when a lived-in 577 sq ft flat at Fu Keung Court in Wong Tai Sin sold for HK$8.99 million, Centaline said.
“Sales of HOS will continue to surge this month, as Hong Kong’s economy is improving and will boost buying confidence,” said Wong Leung-sing, senior associate director of research at Centaline.
He said the total transaction value could increase to HK$37 billion and the total number of deals to 6,900 this year.
The frenzy came as the overall prices of lived-in homes reached an all-time high in August, with JLL predicting a jump of up to 5 per cent for 2022.
Wong also attributed rising prices to an easing of the mortgage lending policy for flats below HK$10 million for first-time buyers.
Under the current policy, homebuyers can apply for up to 90 per cent for flats worth HK$8 million or below and 80 per cent for flats that cost HK$10 million or less.