Hong Kong Residential Sales Briefing

Despite the poor investment sentiment due to the recent stock market correction, luxury volumes were again supported by strong primary sales.  Price growth moderated, however, with the future looking increasingly uncertain.

November 2015

 
  • Another record deal on the Peak shows that a niche product in a prestigious location will always find a buyer.
  • The recent stock market turbulence has not deterred potential buyers with several luxury primary launches recording better than satisfactory results. 
  • Luxury volumes on both Hong Kong Island and in Kowloon / New Territories have rebounded to pre-DSD levels but remain low.
  • Luxury price growth has moderated across the board in a market faced with challenging yields and a far from certain future.
  • While primary launches have so far been successful, further launches in areas with a high concentration of completions may face more uncertainty.
  • The mass market has already been feeling pressure with even primary sales volumes receding in July and August.
  • With investment prospects dwindling, an imminent interest rate rise and supply likely to increase, luxury residential prices may decline by 10% next year.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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