Hong Kong Residential Sales Briefing

Given the weak market sentiment, developers were slow in launching new luxury projects in Q4/2015, with both prices and volumes declining as a result.

February 2016

 
  • Stock market volatility and the interest rate rise in the US dampened investment sentiment, with few noticeable luxury transactions.
  • Luxury sector transaction volumes declined due to the lack of significant new launches in Q4/2015.
  • Luxury sector prices remained broadly steady, with luxury apartment prices on Hong Kong Island and Kowloon recording some mild declines.
  • The increase in future supply put further pressure on developers’ pricing of primary launches.
  • While primary sales rebounded after the quiet summer months, secondary sales declined further, and total transaction volumes of 10,000 in Q4 reached a post-2002 low.
  • Luxury residential prices are on course to decline by 15% this year, with little positive news to report.
 
 

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Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Savills Two Exchange Square

+852 2842 4573

 

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