Home sales in Hong Kong rose by 22 per cent in November as buyers took advantage of a cut in stamp duties and other property-easing measures announced by Chief Executive John Lee Ka-chiu in his policy address.
A total of 2,767 new and lived-in homes were transacted last month, versus 2,263 units in October, according to Midland Realty, one of the city’s largest property agencies.
New home sales surged 63.3 per cent month on month to 565 units, while second-hand homes recorded a near 15 per cent increase to 2,202 units, Midland’s data showed. Overall property transactions, including car parking spaces, shops, offices and industrial units, jumped 20 per cent to 3,626 last month.
“These were delayed sales that took place in November because buyers were waiting for a reduction in the stamp duties,” said Martin Wong, director and head of research and consultancy for Greater China at Knight Frank.
In his second policy address on October 25, Lee announced several measures to relax the decade-old property curbs. These included halving the buyers’ stamp duty to 7.5 per cent for non-permanent residents and residents buying a second or additional home.
A special stamp duty of 10 per cent was also waived for homeowners who resell their property after two years, from the previous three-year requirement. Eligible overseas talent are also not required to pay stamp duty on property purchases unless they fail to become permanent residents.
Hong Kong’s second-hand home prices skid to lowest since March 2017
Hong Kong’s second-hand home prices skid to lowest since March 2017
Meanwhile, overall property transactions in Hong Kong are on track to end below the level seen in 2022, which was a historic low.
A total of 54,265 deals were concluded in the first 11 months of the year, while 59,619 property units changed hands last year, according to data from Hong Kong Land Registry. The previous low was in 2013 with 70,503 transactions.
The total value of sales from January to November added up to HK$444.3 billion (US$56.9 billion). In 2022, the turnover stood at about HK$555 billion.
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“The number of property sales registrations does not fully reflect the impact of the easing of property restrictions,” said Buggle Lau Ka-fai, Midland’s chief strategist.
Five weeks before the easing measures were announced, 314 new homes were sold, five weeks later 686 new homes were sold, Lau said. It will take time for the market to feel the full impact of the initiatives, he added.
Lau said sales of new homes this year will slightly exceed last year’s total of 10,243, but the secondary home market as well as other property segments would see lower sales than last year.
“Overall transactions this year will probably be below 59,000 units, lower than the 59,619 units recorded last year,” he said.