Hong Kong’s property market to build on gains in the Year of the Horse: agents

Hong Kong’s residential property market made gradual and steady gains in the Year of the Snake, with the momentum set to continue in the Year of the Horse, according to the city’s largest real estate agencies. “The Year of the Snake marked the end of three years of decline and a strong rebound fuelled by policy easing and wealth effect [from the Hong Kong stock market’s gain],” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties. “The Year of the Horse will build on the momentum,” he said. “With lower rates and potential government budget support, the market will move from recovery to expansion.” He said investors could expect a more balanced volume growth, firmer prices across the mass, mid‑market and luxury segments and a healthier secondary sector. As of February 12, property transactions in the city – spanning new and lived-in homes, offices, shops, industrial units and car parking spaces – totalled 87,506 valued at about HK$678 billion (US$86.8 billion), according to data from the Land Registry. Ricacorp, meanwhile, estimated 88,200 transactions valued at HK$684 billion in the just-concluded Year of the Snake, an increase of 31 per cent and 27 per cent, respectively, compared with the preceding Year of the Dragon. The number of registrations rose for three consecutive years to a new high from a historical low in the Year of the Tiger in 2022, according to a statement from the agency. At the same time, the total transaction value rose for two consecutive years, reaching the highest level in nearly four years, the statement added. The residential property market received a boost from last year’s budget, which imposed a flat stamp duty of HK$100 for homes priced at HK$4 million and below, expanding the concession previously only granted to buyers of homes worth HK$3 million or less. Meanwhile, Midland Realty’s proprietary property gauge showed that home prices in the city rose 7.3 per cent in the Year of the Snake, the most since the Year of the Rooster in 2017. Of the three main districts, Kowloon saw the highest gains, rising 9.4 per cent, followed by Hong Kong Island at 7.1 per cent and New Territories at 5.7 per cent, the gauge showed. “We expect a stronger property market after the Lunar New Year holiday and prices to rise further,” said Yeung Ming-yee, a senior associate director at Centaline Property Agency. The latest Centaline City Leading Index (CCL), which reflects property prices in the city, stood at 149.39, up 1.5 per cent week on week and the largest increase in nearly three years. The gauge, released weekly, has risen for four consecutive weeks for the first time since mid-June, with the gains adding up to 3.3 per cent. The CCL jumped significantly before the Lunar New Year, with the index reaching a new 113-week high.