[ET Net News Agency, 15 July 2019] Real estate advisor Savills reported that the
overall Hong Kong residential market recorded 21,685 transactions in the first four months
of 2019, flat compared with the same period last year.
Both luxury and mass residential markets were supported by the primary market, as its
market share of total volume increased from 22.4% in 1Q to 37.4% in 2Q. The super luxury
segment saw a fall in demand and the townhouse market recorded a 1.5% price adjustment
over 2Q.
On Hong Kong Island, though the luxury apartment transaction volume fell substantially
by 24.8% over the first half of the year, as many potential purchasers looked for bargains
in the secondary market but few landlords were prepared to entertain (secondary
transaction volumes -29.1% in 1H), prices increased by 3.6% in 2Q/2019 and 5.6% over the
first half of the year.
The Kowloon/NT luxury market saw transactions rebounding in 1H/2019 thanks to aggressive
primary launches, with overall and primary transaction volumes both rebounding by 1.6% and
10.8% respectively.
"The super luxury segment saw some price adjustment with both Mainland and local HNWIs
sitting on the sidelines. Elsewhere, buyers were looking for bargains given the uncertain
economic environment but very few landlords were prepared to entertain," said Simon Smith,
Senior Director, Research & Consultancy at Savills.
"The residential demand may pull back over the next three to six months, especially at
the top end where asset allocation among cities is most mobile. The mass market may still
be driven by primary sales." added Keith Chang, Managing Director at Savills.
"The mass sentiment was mostly affected by external uncertainties, particularly the
impact of the trade war on local job prospects. And the proposed Extradition Bill, though
retracted, may have also pushed some high net worth's to at least rethink their asset
allocation strategy within Asia." added Edina Wong, Senior Director, Residential Services
at Savills. (KL)