Hong Kong real estate maintained its growth momentum after the number of transactions hit a three-year high.
Optimism has returned to Hong Kong's property market after interest rates were cut by half a point in September 2024 - Photo: SCMP
The South China Morning Post (SCMP) cited Midland's data showing that in 2024, the total number of real estate transactions in the Hong Kong market (China) reached 67,662, worth 68.2 billion USD.
Hong Kong property transactions are expected to accelerate, after hitting a three-year high in 2024, thanks to improved sentiment driven by factors such as higher loan values, interest rate cuts and demand from the investment-migration programme.
According to Midland Realty, as of December 30, a total of 67,662 transactions for new and used homes, offices, shops, industrial parks and parking lots were completed, up 16% from 58,035 transactions in 2023 and the highest level since 2021 with 96,133 transactions.
“With the recovery in transaction volume, the total value of registered assets last year exceeded HK$530 billion ($68.2 billion), up more than 10% from the HK$477.9 billion recorded in 2023,” said Buggle Lau Ka-fai, chief analyst at Midland.
However, according to Buggle Lau Ka-fai, the total number of transactions last year was 6% lower than the five-year average (2019-2023) of 72,380 transactions/year, while the value was 20% lower than the annual average of HK$654 billion over the same period.
The increase in the total number of property registrations last year was led by the housing market, according to the real estate agency.
Sales of new and used homes were supported by the removal of property restrictions in February, as well as favourable measures announced by Hong Kong Chief Executive John Le Ka-chiu in his speech in October.
These measures include easing loan-to-value ratios and including residential real estate assets in the Capital Investment Program, also known as the Migration Investor Program.
The onset of a cycle of falling interest rates and rising rents amid falling home prices has also attracted end-users to switch to home buying, while long-term investors have entered the market, Lau said.
Optimism has returned to the property market after a half-point interest rate cut in September, and the move was further boosted by an easing of mortgage rates for home buyers and investors in October.
In November, HSBC, along with Hang Seng Bank and Bank of China (Hong Kong), cut their benchmark lending rate for the second time to a two-year low of 5.375%. Standard Chartered, Bank of East Asia and ICBC (Asia) also cut their rates to 5.625%, with lower mortgage rates for home buyers.
Will Chu, senior research analyst for Hong Kong and China real estate at CGS International Securities, expects “the benchmark interest rate could fall by 25-50 basis points from current levels by the end of 2025 as the US Federal Reserve is set to cut interest rates.”
This, according to Will Chu, will encourage more end-users and investors to buy homes with the expectation that Hong Kong's rental prices will increase by 4% by 2025, driven by demand for high-end apartments from Chinese professionals and students residing in Hong Kong.
Will Chu also expects major transactions to increase by 6% this year.
Hong Kong home prices rose slightly for a second straight month in November, as a closely watched gauge rose to 290.9% from 290.7% in October, according to the Rating and Valuation Department.
Previously, house prices had fallen 6.55% in the first 11 months of last year, down 27% from the record high in September 2021.
Source: https://tuoitre.vn/giao-dich-dat-muc-cao-nhat-3-nam-bat-dong-san-hong-kong-duy-tri-da-tang-truong-20250102231937011.htm
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