Rising Hong Kong Home Sales Driven by Improved Market Sentiment

Hong Kong property sales are witnessing a significant uptick as developers are raising prices in response to improved market sentiment. Following various supportive measures, such as interest rate cuts and a recovering stock market, the outlook has shifted positively.

Market Dynamics Behind Price Increases

Chinachem Group recently raised prices for the Echo House project in Cheung Sha Wan, following strong demand with over 5,500 registrations for available units.

• Derek Chan, head of research at Ricacorp Properties, noted that factors like policy support are enhancing buyer confidence.
• Following the government’s relaxation of mortgage financing policies, buyers can now borrow up to 70% for homes over HK$30 million.
• The significant increase in transaction volumes shows robust market performance.

Developer Strategies Amidst New Regulations

CK Asset Holdings and Sun Hung Kai Properties successfully sold 407 units combined over one weekend, highlighting strong demand. While some developers raise prices, many are actively managing inventory while ensuring competitive pricing.

However, Early Light International Holdings has lowered prices for its project at Gold Coast Bay due to less favorable sales performance previously.

Future Expectations

Given the current trajectory, developers may continue to cautiously adjust prices based on market reception. The ongoing influence of the US Federal Reserve and the Hong Kong Monetary Authority further complicates forecasts.