‘Worst is over’ for Hong Kong property even though sales dropped to four-month low in February, analysts say

The total number of transactions, including those for residential, office, retail and car parking spaces, dropped 27.7 per cent to 3,182 deals from a month earlier, according to Land Registry data. The total value of sales also plummeted 31 per cent to HK$23.25 billion (US$2.98 billion).

Last month’s tally was a turnaround from January, when the number of transactions surged by 17 per cent month on month, hitting a post-August high as the US Federal Reserve held interest rates steady amid expectations of rate cuts later this year.

However, the benchmark Hang Seng Index dropped 9 per cent and the Hang Seng Tech Index slumped by 20 per cent in January due to concerns about weak consumption and the crisis in mainland China’s property sector.

“The stock market slumped substantially in January, which had a spillover effect, hurting the confidence in the property market,” said Yeung Ming-yee, senior associate director at Centaline Property Agency.

Yeung, though, is positive about the outlook for Hong Kong’s property sector after Financial Secretary Paul Chan Mo-po removed all property curbs in his budget speech on Wednesday. The same day, the Hong Kong Monetary Authority (HKMA) also relaxed its mortgage policies to allow homebuyers to borrow more for buying properties.