Wheelock Properties managing director Ricky Wong Kwong-yiu (second right) at the Monaco Marine sales office at Prince Hotel in Tsim Sha Tsui, on April 23, 2022. Photo: Jonathan Wong
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https://scmp.com/business/article/3180225/hong-kongs-property-market-regains-mojo-deals-hit-10-month-high-may Business
Hong Kong’s property market regains mojo as deals hit 10-month high in May
- Overall property transactions jumped 63.8 per cent month-on-month to 7,949 in May, which was also the highest since 9,957 clocked in July 2021
- Sales of new homes saw the biggest jump in May, rising nearly fivefold to 1,492 units from the previous month
Potential buyers wait in line to buy flats at Sino Land’s Grand Mayfair residential development in Yuen Long, on May 20, 2022. Photo: Xiaomei Chen
Hong Kong’s property market picked up momentum in May, with deals hitting a 10-month high, building on the gains of the previous month as homebuyers returned after the fifth wave of Covid-19 was brought under control.
Total transactions, including residential, commercial and industrial properties as well as parking spaces, rose 63.8 per cent month-on-month to 7,949 in May, according to data from the Land Registry. It was also the highest total since 9,957 deals were completed in July 2021.
“As the pandemic continues to stabilise, the government has gradually relaxed social distancing measures, helping to lift property market sentiment,” said Wong Leung-sing, a senior associate director of research at Centaline Property Agency.
The brisk second-hand transactions, coupled with the enthusiastic response of buyers to many new launches, led to a significant increase in the overall number of deals in May, said Wong.
The May figure was more than double the 3,828 transactions in March. The biggest jump was for new homes, sales of which skyrocketed nearly fivefold to 1,492 from the previous month.
The most popular projects included the first phase of Grand Mayfair, which sold 701 flats, and Monaco Marine, which sold 267 homes.
Ricky Wong Kwong-yiu, managing director of Wheelock Properties, expects sales of new homes to remain at around 1,500 in the coming months as developers speed up launches, taking advantage of an improvement in sentiment following the easing of the fifth wave of the coronavirus pandemic.
A 1,206 sq ft flat with a rooftop at K Wah International’s K Summit development in Kai Tak on Thursday sold for HK$48.3 million (US$6.16 million), or HK$40,050 per sq ft. Both figures are the highest for the project.
Chinachem Group sold three duplex flats at the luxury project Bisney Crest in Pok Fu Lam in two days. One of them, measuring 1,640 sq ft, sold for HK$60 million on Wednesday.
Sino Land sold one flat at 133 Portofino in Sai Kung measuring 1,076 sq ft on Sunday for HK$21.8 million.
On the outlook for this month, Derek Chan, head of research at Ricacorp Properties, said transactions are likely to drop by as much as 18 per cent to around 6,550.
“In the second-hand residential market transactions are slowing down as owners have become more ambitious [with asking prices] and some have even raised asking prices, narrowing the room for bargaining,” said Chan.
Coupled with new residential launches that are competing for buyers, the number of second-hand transactions may soften by 20 to 30 per cent this month, he added.
Wong of Centaline expects the overall sales figure in June to decline by up to 12 per cent to around 7,000 in June.
“Second-hand bargain properties have been purchased, and sales have slowed down,” said Wong. “The primary market is seeing launches with restrained pricing, which has diverted second-hand buying power.”