Sales of new and lived-in homes, shops, office units, car parking space and industrial properties jumped by 55 per cent to 6,657 lots last month
Hong Kong’s property sales increased to the highest level in four months in March, as a resurgent stock market and a lower tax scheme for homes spurred sentiment, according to two of the city’s largest agencies.
Sales of new and lived-in homes, shops, office units, car parking spaces and industrial properties jumped by 55 per cent to 6,657 lots, while the transaction value soared 61 per cent to HK$45.63 billion (US$5.9 billion) last month, according to estimates compiled by a property agency.
Another property agency estimated that 6,672 lots changed hands, 54 per cent higher than the month before.
“With favourable property market measures [announced] in the budget at the end of February and the strong performance of Hong Kong stocks in recent months, new property sales have been outstanding,” an agent said.
The bullish momentum is likely to be sustainable, with the forecast for deals in April to reach 7,040 lots, the agency said. That would be the highest monthly transactions since the 7,695 lots in November, the agency said.
The revival in the city’s real estate industry vindicates the stamp duty cuts announced in February by Financial Secretary Paul Chan Mo-po, who slashed the levy on homes worth up to HK$4 million to HK$100 from HK$60,000. The previous threshold was HK$3 million. The change could spur sales of HK$4 million flats to account for 30 per cent of private home sales, up from 25 per cent in 2024, another property agency said.
“The easing of stamp duties for properties worth HK$4 million has led to many buyers chasing small residential units,” an agent said.
A booming stock market also lifted sentiment, encouraging more buyers to enter the market. Hong Kong’s Hang Seng Index has risen by about 14.5 per cent this year, lifting its market value to about HK$26.7 trillion.
Buyers of residential property were the most active, increasing their purchases by about 64 per cent to 5,630 units, up from 3,442 in February, the local property agency added. Commercial and industrial deals increased by about 46 per cent to 396 units, while transactions for car parking spaces jumped about 28 per cent to 354.
In the first two months of the year, overall property sales improved by about 22 per cent to 9,245 units, according to the latest data from the Land Registry.
Despite the improving property sales, prices in the secondary home market continued to fall for the third straight month in February, according to the Rating and Valuation Department.
Lived-in home prices retreated 0.9 per cent in February from the preceding month to the lowest since July 2016, according to an index compiled by the department.
Hong Kong’s home prices saw the second largest fall in the fourth quarter, declining 8.2 per cent, among 55 global markets tracked by another property agency. Only mainland China fared worse with an 8.6 per cent slump, the consultant’s report released on Tuesday showed.
Another property agency expects prices for mass residential homes in the city to drop between 5 and 10 per cent this year, and decline by up to 5 per cent for luxury flats, while town houses are likely to see their worth retreat by 5 per cent, it said in its latest report.
