Hong Kong’s April lived-in home prices gain 0.35% on stamp duty relief
An index measuring home prices in the city’s secondary market rose 0.35 per cent from March, according to a government report
Hong Kong’s lived-in home prices rose in April, halting a four-month losing streak, after a cut in stamp duty helped lift sentiment and transactions with experts forecasting a sustained momentum following a drop in borrowing costs.
An index measuring home prices gained 0.35 per cent gain from a month earlier, the Rating and Valuation Department said in a report on Wednesday. Prices declined by a cumulative 2.33 per cent from November to March, contributing to a 28 per cent slide since the market peaked in September 2021, according to official data.
Transactions in both primary and secondary home markets jumped last month with developers and owners completing the sale of 5,694 units in April, the highest monthly tally since November’s 6,298 units. They increased by 6.1 per cent versus 5,367 units in March, according to Land Registry records.
Financial Secretary Paul Chan Mo-po reduced the stamp duty on homes priced up to HK$4 million (US$510,000) to HK$100 from HK$60,000 in his budget in February to revive the market. Before the budget, the HK$100 incentive was only extended to homes priced up to HK$3 million.
“The resilience is partly attributed to the expanded stamp duty break, which encouraged sellers to hold firm on pricing,” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties. Prices could stabilise in May and rise by about 0.8 per cent, aided by lower interest rates, he added.
Homes worth up to HK$4 million accounted for a quarter of residential sales in 2024, according to CBRE. The cut in the stamp duty was likely to increase the share of this segment to 30 per cent, the property consultancy said.