10 May 2024

Hong Kong’s New Home Sales Hit Record High of $5.4 Billion

New home sales in Hong Kong surged to a record high in April, as buyers rushed to the market after the government removed property curbs. The value of firsthand residential property sales reached HK$42 billion ($5.4 billion) last month, more than triple the value of transactions in March, according to Ricacorp Properties Ltd. That’s the highest in data going back to 1996. The number of sales at 3,545 was also the most since 2006. This sales boom follows the removal of extra taxes in February, which led Hong Kong’s developers to speed up new project launches and discount properties to capture increased demand. Last month, CK Asset Holdings Ltd. priced its homes in the Blue Coast project roughly 20% lower than nearby competitors, while Great Eagle Holdings Ltd.’s units in the Ho Man Tin area were initially priced at about 30% below nearby new projects that launched a year earlier. Developers are racing to clear their inventory with discounts, after a weak property market in the past year led to the accumulation of unsold homes. The number of properties available in the primary market rose 6% to 91,300 in the fourth quarter of 2023 from three months earlier, according to Jones Lang LaSalle. By comparison, only 13,000 new homes were sold on average every year from 2021 to 2023, government data show.


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