Hong Kong posts record home purchases by mainland Chinese, realtor says
Centaline Property Agency says the purchase volumes, value and contribution by such buyers are all at historical highs
HONG Kong saw record home purchases by mainland Chinese buyers in the first six months after the financial hub removed all buying curbs, major realtor Centaline Property Agency said, with such buyers’ transaction value accounting for 31 per cent of the total.
In late February, Hong Kong removed all additional stamp duties for foreign and second-home buyers, as well as for those selling their flats within two years of buying them. This was after prices had plunged 20 per cent from their 2021 peak, hurt by higher mortgage rates, an outflow of talent, and a weak market outlook.
During the first half, 6,117 new and second-hand homes worth a total of HK$70.5 billion (S$12.1 billion) were purchased by mainland Chinese buyers, according to a Centaline survey that tracks buyers’ names with Mandarin spellings, up 70 per cent and 42 per cent, respectively, from a year ago.
The volume and value accounted for 25 per cent and 31 per cent of the total recorded in one of the world’s most expensive property markets during the period, respectively.
Centaline said the purchase volumes, value and contribution by mainland Chinese buyers were all at historical highs. Before 2023, the contributions were below 15 per cent.
The removal of extra stamp duties, a peak in interest rates and a slide in home prices have attracted more non-locals to buy in the market, particularly mainland Chinese who are either investors or have already acquired Hong Kong citizenship, said Centaline Asia-Pacific vice-chairman Louis Chan on Tuesday (Jul 16).
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The realtor added that mainland Chinese buyers usually prefer new and small to medium-sized homes.
The mainland property market is mired in a multi-year slump, with new home prices falling at the fastest pace in nine years in June while property sales and investment continued to contract.
Despite the rise in foreign buyers, Hong Kong’s private home prices lost steam in May after much of the local pent-up homebuying demand was digested, dropping 1.2 per cent from April after rising for two months in a row since the lift of all purchase curbs.
Last month, survey company Demographia ranked Hong Kong as the least affordable city in the world for the 14th consecutive year. REUTERS
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