Two months after the "withdrawal", Hong Kong's first-hand private residential transactions have returned to their peak.
According to data from Hong Kong's Centaline Real Estate Research Department, after the "spicy withdrawal", developers accelerated the launch of new projects, and the price was restrained, attracting users and investors to enter the market, stimulating first-hand registrations to soar to a high level of more than 3,000. In April this year, 3,619 first-hand private residential transactions in Hong Kong were recorded, representing an increase of 1.43 times and 2.23 times respectively from 1,488 and HK$13.71 billion in March. The number of cases reached a new high of 211 months (more than 17 and a half years) after 3,924 cases in September 2006, and the value exceeded HK$40 billion for the first time, surpassing the high of HK$38.63 billion in April 2017 and hitting a record monthly high in nearly 29 years since records began in July 1995.
In the first four months, the number of first-hand private residential registrations in Hong Kong has reached 60% of the 2023 level
Yang Mingyi, senior co-director of the research department of Centaline Real Estate, pointed out that in April 2024, Hong Kong recorded 9,880 registrations of overall property sale and purchase agreements (including residential, parking spaces and industrial and commercial properties), with a total value of HK$83.935 billion, a sharp increase of 97.1% and 1.25 times respectively from 5,013 cases and HK$37.371 billion in March.
Among them, 8,551 cases and HK$77,456 million were registered, representing a significant increase of 1.15 times and 1.58 times respectively from 3,971 and HK$30,062 million in March. The number of cases hit a new high of 138 months (11 and a half years) after 8,714 cases in October 2012, while the amount hit a new high in 33 months (nearly 3 years) after 78.604 billion Hong Kong dollars in July 2021.
In the first four months of 2024, 6,463 first-hand private residential transactions were registered in Hong Kong, which has reached 60% of the 10,682 cases in 2023, and it is estimated that the first-hand transactions in 2024 are expected to get rid of the nearly 10-year low of only about 10,000 transactions in 2022 and 2023.
According to Citibank's survey report released last week, 72% of Hong Kong's HNWIs (i.e. those with liquid assets of HK$1.5 million or more) have expressed a higher desire to buy a home since the implementation of the "Removal of Demand-Driven Measures" (the removal of residential property demand management measures). Among them, 46% of HNWIs prefer to buy a property for investment, 34% want to buy a property for their children, and 25% say they want to buy a property and rent it out for a profit.
The lowest unit price of entry-level seaview luxury homes in Hong Kong is HK$194,000
In terms of mainland property purchase in Hong Kong, it is understood that investors in Hong Kong are very concerned about property appreciation and rental return ratio, among which Kai Tak District is a hot spot for first-hand new projects in Hong Kong. As part of Hong Kong's second core business district, Kai Tak District is the last large-scale regional development site in the city center, and has an extensive transportation network that connects Hong Kong's major business districts and the entire Greater Bay Area via MTR, high-speed rail and cross-border buses, integrating into the Bay Area's high-quality living circle. The AIRSIDE mega-complex (the shopping mall has already opened), the super-large complex THE TWINS Twin Hubs, the Kai Tak Sports Park (to be completed within this year), and the K11 Kai Tak Retail Pavilion (expected to open within this year) will be completed or opened within the year.
Kai Tak Bay is located in the Kai Tak Runway District, which is surrounded by the sea on three sides
According to reports, most of the buyers who come to Hong Kong to buy property after the "withdrawal" are high-net-worth individuals, in addition to the pursuit of investment returns, the comfort of self-occupation is also the top priority for them to choose a residence. Standing in the middle of Victoria Harbour, the "Kai Tak Runway District" has become a new luxury residential area in Hong Kong with scarce sea views. The entry-level luxury house "Kai Tak Bay" in the area has become the first choice for many buyers to "get on the car" with the lowest unit price in the runway area of about HK$194,000.
As one of the few waterfront residences in the city, Kai Tak Bay has nearly 14,000 square metres of clubhouse and garden space, close to the Urban Park (under construction) and the 10,000-metre waterfront promenade. One of the project developers, KWIH, and Galaxy Entertainment Macau are both part of the K. Wah Group.
According to reports, Kai Tak Bay has recently launched a "2.5-bedroom unit", which can be transformed into a multi-functional space such as a study, a worker's room or a storage room, with a terrace inspired by Lamborghini sports cars, and the construction standards of home appliances and materials used in the house of international brands such as Miele and Siemens.
Unit E, 18/F, Tower 2B, Kai Tak Bay Modified Show Flat – Living & Dining Room
In addition, KWIH's villa project in Kowloon Tong, adjacent to the traditional luxury residential area, is also hard to find, and it is the first private residential project in Hong Kong to use "titanium".
The real scene of the Jialin project
Written by: Qiu Yongfen, reporter of Nandu Bay Finance Agency