Hong Kong residential transaction volume more than doubled in April

Transactions reached over 8,500 cases during the month.

Hong Kong’s residential property market saw a notable rebound in April amid active new project launches by developers at deep discounts, said Knight Frank in a report. According to the Rating and Valuation Department, overall residential prices increased by 1.06% MoM in March, ending 10 consecutive months of decline. 

“On a yearly basis, however, overall prices still fell by 13.2%, and 23% lower than the peak recorded in 2021. The number of negative equity cases peaked in Q1 2024, the highest in two decades, according to figures reported by the Hong Kong Monetary Authority,” the report added.

Here’s more from Knight Frank:

As developers are rapidly selling off their inventory, coupled with the removal of cooling measures, residential transaction volume recorded a significant jump in April of 115.3% MoM and 86.6% YoY to 8,551 cases, according to the Land Registry. 

Primary sales accounted for 3,636 cases, surging 142.6% MoM and 134.6% YoY. Recently, there has been high demand and oversubscribed tickets for new launches, such as The YOHO Hub II in Yuen Long, Onmantin in Ho Man Tin, and Blue Coast in Wong Chuk Hang. 

In the luxury housing market, demand from investors and Chinese mainland buyers persisted. The most notable transaction recorded during the month was at Mont Verra, Beacon Hill, where an 8,239-sq-ft house was sold for HK$600 million (HK$72,824 per sq ft), making it the most expensive unit sold in Kowloon in April. 

The leasing market also showed improvement, as the continued inflow of top talent drives rental demand. Rents rebounded slightly in March after a two-month fall, with the rental index rising 0.5% MoM and 5.6% YoY. Flats near the MTR station in Western District, with decent decoration and monthly rents ranging from HK$20,000 to HK$40,000 were preferred by mainland professionals. 

A potential delay in the US Federal Reserve’s rate cut could continue to pressure overall residential market sentiment and activity. Looking ahead, as prospective buyers continue to flock to new projects, we expect primary sales to remain robust in the upcoming months.