Home prices stabilized in Q2 as transactions jump by 48%
With the fifth wave of the pandemic gradually being brought under control, the city’s residential market has been progressively recovering since the month of April. Total transactions for Q2 are now expected to reach 14,900, up 48% q-o-q, although this still represents a drop of 32% y-o-y. Year-to-date prices have fallen marginally and are expected to further stabilize. Some popular housing estates recorded slight quarterly growth, demonstrating signs of healthy end-user demand. In 2H 2022, the residential market will continue to be driven by primary sales, particularly for buyers looking for upgrading options. We expect property prices will rise by no more than 3% this year. In the longer run, infrastructure projects will continue to improve connectivity in Hong Kong, thereby narrowing the price gap between the New Territories and urban areas. This will also accelerate urban renewal and benefit the city’s residential real estate markets.
- Q2 residential transactions expected to rise by 48% q-o-q to reach 14,900 deals, with the price decline moderated
- Railway infrastructure and transportation continue to be robustly developed, enhancing and shortening travelling times, and expected to bring up property prices in the New Territories, with growth potential to outperform urban prices
- We expect the 2H residential market to be driven by new homes, with full-year transactions forecast to fall by 20-25% y-o-y, with a market price increase of no more than 3% by year-end