Hong Kong Residential Sales

Housing Investment Consultancy
Residential Sales

August 2017

Luxury sales volumes rebounded in Q2 on the back of a rising stock market and low real interest rates.  With the impact of new restrictive measures receding and supply remaining tight, luxury prices look set to head north over the remainder of 2017.

Luxury sales volumes rebounded over the second quarter as the Hang Seng rose and real interest rates remained low.

The few luxury launches available in the primary market gathered pace.

Both townhouse and luxury apartment prices continued to rise to reach new heights.

Looking ahead, luxury prices are expected to rise further this year even as the current rally begins to look rather frayed.

While there are some parallels between today and 1997, the chances of a similar crash in property values remains unlikely without an external shock of the kind which precipitated crises in both 1997 and 2008.

In today's market there are some obvious similarities to pre-crisis 1997 with record prices and low levels of affordability. Despite this we are unlikely to see a market crash but a cyclical peak looks to be within sight.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square, 23/F

+852 2842 4573

 

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