Hong Kong weekend home transactions jump to three-year high

HONG Kong’s 10 biggest residential estates saw transactions rise to the highest in three years last weekend, according to Centaline Property Agency, as the market continued to benefit from recent easing steps.

A total of 37 apartments changed hands on the weekend, up 48 per cent from a week earlier. Hong Kong property buyers have been rushing to snap up homes after the government removed extra property levies last month to boost the market.

Shares of Hong Kong’s biggest developers rose on Monday (Mar 11) morning as the figures spurred optimism that the relaxation of cooling measures will continue to stimulate housing demand. 

Still, analysts at S&P Global Ratings expect home values will remain weighed down by high interest rates and ample supply. UBS Group estimates prices will decline by 5 per cent in 2024, despite the policy change.

Secondary home prices in the week ended March 3, which included four days after the lifting of the curbs on Feb 28, fell 0.8 per cent from a week earlier, the latest Centaline data show.

For now, investors are welcoming the pickup in demand. New World Development’s shares rose as much as 2.8 per cent on Monday morning in Hong Kong. Henderson Land Development gained 2.3 per cent, while Sun Hung Kai Properties climbed more than 1 per cent.

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Last month’s easing means foreign buyers and existing-home owners no longer have to pay higher taxes on transactions. Instead, everyone is subject to the regular rate capped at 4.25 per cent. In addition, mortgage rules were loosened to allow some homebuyers to purchase properties with smaller down payments. 

Hong Kong’s new-home sales surged 10 times in the first five days after the government removed the cooling measures compared with two months ago, according to Midland Realty. Henderson Land’s latest housing project also benefited from the tax cuts. The developer sold almost 200 apartments in a few hours on Thursday after applications were oversubscribed by 34 times. BLOOMBERG