Mainland Chinese Homebuyers Fuel Hong Kong Property Market Growth as Stamp Duties Recede
Mainland Chinese Buyers Transforming Hong Kong Property Market
In the first eight months of 2024, homebuyers from mainland China spearheaded a remarkable transformation in the Hong Kong property market, driven by the elimination of previous cooling measures. Data from Centaline Property Agency reveals that these buyers accounted for 7,575 primary and secondary property transactions, marking a staggering 70% increase year-over-year.
Record-Breaking Transactions and Values
The value of transactions reached HK$84.89 billion (US$10.9 billion), a 43% rise from the same timeframe last year. Notably, mainland buyers have played a crucial role, representing over 20% of total transactions for six consecutive months. In August, they constituted 22.8% of all deals, alongside a notable increase in registrations.
Impact of Changed Stamp Duties
The withdrawal of the Buyer’s Stamp Duty and New Residential Stamp Duty specifically targeting non-residents has been pivotal. Homeowners selling within two years are also exempt from Special Stamp Duty, enhancing market appeal. Louis Chan Wing-kit, CEO of Centaline, anticipates a further influx of capital from the mainland.
Future Outlook
With lower interest rates and supportive measures from Beijing, the outlook is bright. Areas with new developments, particularly Kai Tak and Tuen Mun, are witnessing substantial sales to mainland buyers. In August, Kai Tak alone accounted for 42% of transactions to mainland clients, illustrating the shifting dynamics within the market.
Market Sentiment Driven by Bulk Buyers
Experts suggest that since many of these mainland buyers operate as bulk purchasers, their activity is vital in driving market sentiment, complementing local buyers. Martin Wong from Knight Frank highlights that before interest rates potentially decline further, the Hong Kong market will lean heavily on these influential buyers to maintain momentum.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.