Hong Kong Residential Sales

Housing Investment Consultancy
Residential Sales

October 2018

While limited supply and the search for trophy assets by HNWIs should continue to support the luxury segment, the mass residential market may face more challenges in the short term.

Headline deals have continued to dominate the super luxury sector, the latest one being the sale of 37 Barker Road for HK$3 billion, signifying that the search for trophy assets by HNWI continues.

Nevertheless, a stumbling stock market and potential weakness in the local and Mainland economies, means that both townhouse and luxury apartment price growth has flattened.

During the quarter, the tender of a luxury site on Mansfield Road on the Peak attracted tremendous market attention with record high bids expected.

Mass residential price growth also slowed and with the first interest hike in 12 years and increasing supply expected over the next three years, the current price rally will be put to the test.

We have explored different scenarios for both the luxury and mass residential markets and predict a 5% to 10% fall in luxury prices and up to 20% in the mass market over the next 15 months.

 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

Subscribe to kamaco research

 

Would you like to be notified via email about new research?