Hong Kong home sales sink to 33-year low in 2023 amid high interest rates as sector sees glimmers of rebound in December

Property transactions in Hong Kong descended to the lowest level in 33 years in 2023 as sentiment among potential homebuyers was submerged under a deluge of poor economic news and high interest rates, although December’s sales figures showed some rebound.

A total of 58,035 properties changed hands in the city in 2023, a 2.7 per cent drop compared with 2022 and the lowest figure since 1991, according to Land Registry’s data released on Wednesday. The total value of transactions plunged 13.8 per cent year on year to a 10-year low of HK$477.9 billion, the government data showed..

Nevertheless, analysts expect the city’s transacted sales to rise this month amid a pause in rate hikes, anticipation of rate cuts later in 2024, and a basket of rescue measures issued by the local government.

In December, transacted property sales rose 6.6 per cent month on month to a three-month high of 3,764, while sales value jumped 29.8 per cent to HK$33.59 billion, the Land Registry said.

Centaline Property Agency, one of the city’s leading property agencies, attributed the results to the government’s easing of stamp duties and the US Federal Reserve’s rate-hike pause.

“The figures reflect a sluggish market for the year of 2023 as interest rates soared and the local economy slowed down,” Yeung Ming-yee, senior associate director at Centaline Property Research, said in a report on Tuesday.