Property sales in Hong Kong fell by 11% in May compared with the corresponding month last year despite a 2% increase month-on-month, Land Registry figures show.
Hong Kong property prices have plummeted in recent months as a consequence of weaker demand, with values dropping by an average of 11% since late last year.
The latest market analysis from international real estate firm Knight Frank suggests that the Hong Kong property market has been adversely affected by growing speculation that US interest rate will increase soon, while there is a high level of new housing supply coming onto the market.
Many property developers in Hong Kong are now offering significant price reductions to help offload a high volume of new build housing stock in the city.
However, the ultra luxury sector remains strong, as illustrated by the recent sale of a luxury site which will be transformed into a lavish residential development at Sheung Shing Street in Ho Man Tin for around £660m.
“It is a good sign for the luxury sector in the district, and the price tag indicates the winning developer’s confidence in the market,” said Thomas Lam at Knight Frank.
But occasionally, amid uncertainties, there are bargains to be had!
Wheelock Properties recently sold a luxury home in Hong Kong’s exclusive Peak neighbourhood for around £73m which was 25% lower than estimates by some analysts.
“I am very surprised [at the sale price],” said Danny Leung at Centaline Property Agency.
Knight Frank forecast a 5% to 10% price drop in the luxury segment and up to a 10% drop in mass residential prices this year.