Mainland Chinese demand for Hong Kong homes grows on yuan gains and rising rents
Purchases climb to a two-year high in April as mainland Chinese buyers pile into new launches, drawn by rental yields and yuan’s strength
The pace of buying picked up sharply in April, when mainland Chinese registrations rose nearly 48 per cent month on month to 1,892 deals, the highest level in two years. Transaction value climbed nearly 31 per cent to HK$18.9 billion (US$2.4 billion), a 17-month high.
The value of purchases in the first four months reached HK$61.6 billion, equal to 45 per cent of last year’s HK$137.9 billion total, according to data compiled by Midland Realty from Land Registry records.
The figures were based on the use of Putonghua pinyin names in official records, though some buyers may hold Hong Kong permanent residency.
Vicky, a mainland buyer who came to Hong Kong to study for a master’s degree and declined to give her full name, said she had been looking at homes for two years before deciding to buy a flat at Highwood Phase II at 70 To Kwa Wan Road, which launched last week.
“With the current exchange rate, buying in [yuan] is effectively like getting about a 13 per cent discount,” she said. “The price-to-rent ratio is also attractive.”