Hong Kong homebuyers show tepid demand for new units with prices expected to fall in the fourth quarter

Out of 118 units available at One Innovale-Cabana in Fanling, 66 changed hands on Saturday, and none sold at Tuen Mun and Kowloon City communities

Property sales are expected to recover slightly in the fourth quarter as housing prices drop by 1 to 2 per cent, says Midland Realty executive

Reading Time:3 minutes

One Innovale Cabanna in Fanling. Photo: Handout

Published: 6:43pm, 29 Oct 2022

Hong Kong new home sales turned out to be tepid on Saturday, as rising interest rates and weaker economic growth dampened consumer demand despite lower prices offered by developers.

Out of 118 offerings at One Innovale-Cabana in the Northern Metropolis, Fanling, 66 were sold on Saturday – just 56 per cent.

Although it was the cheapest new property launch since September 2021 in the city, buyers are seen cautious amid a prolonged down cycle in the local real estate market, which is forecast to plummet to a 27-year low this year according to Centaline Property Agency.

Meanwhile, not a single unit was sold at two other projects – Grand Jete in Tuen Mun on the western fringe of Hong Kong’s New Territories and Allegro in Kowloon City – on Saturday.

Rising interest rates and slower economic growth are weighing on buyers’ confidence, said Sammy Po, CEO of Midland Realty’s residential division for Hong Kong and Macau.

“Some buyers are trying to observe the interest rate hikes in the US in November and whether Hong Kong will follow [with its own increases],” he said. “The fluctuation of the stock market and the overall economic trend also make people wait on the sidelines.”