Globally, Hong Kong came in third, behind Dubai which saw 397 deals worth US$6.72 billion and Geneva with 110 transactions worth US$2.9 billion.
“Demand in Hong Kong is mainly coming from Hong Kong buyers or from mainland Chinese purchasers,” said Liam Bailey, global head of research at Knight Frank, in an email interview after the release of the report on Monday. “The uptick reflects a feeling in the market that pricing has adjusted down in the prime and super-prime markets over the past 18 months.
“There is also an ongoing issue with low supply volumes of best-in-class stock, which is supporting prices.”
13:00
How Hong Kong’s housing market became among the world’s most unaffordable
How Hong Kong’s housing market became among the world’s most unaffordable
Hampered by a sluggish economy and high interest rates, Hong Kong’s residential market was down by as much as 24 per cent in February this year from its peak in September 2021, according to an official index tracking the prices of lived-in homes.
As of April, prices had clawed back some losses, narrowing the gap to 22.5 per cent, data from the Rating and Valuation Department showed.
“The recent moves to reduce transaction taxes in the housing market have also aided confidence across the market,” he said. “Hong Kong remains a critical business centre and wealth hub in Asia and the recent volumes of super-prime sales is likely to be sustained into the medium term.”
Singapore is in a completely different phase of its cycle, with the government cooling home prices with punitive levies. Measures announced by the city state last year included a 60 per cent tax on residential purchases by foreign buyers.