Housing supply will remain limited, driving upward pressure on prices.
Hong Kong’s residential prices will continue on its steady way up as it has for past 19 months with prices expected to rise 5% for mass housing and 8% for luxury housing in 2018, according to Knight Frank’s Hong Kong Monthly Report.
Residential sales are expected to reach as much as 63,000 units in 2018, up from an expected 60,000 in 2017. Housing demand is expected to be sustained following the year’s property trend of recording over 5,000 sales transactions for three months in a row last November.
Knight Frank adds that housing supply, especially in the luxury market will remain limited, driving upward pressure on prices next year.
The site sale of a plot off Hingh Wah Street West in Cheung Sha Wan by tender for a whopping $17.288b is said to have further boosted market sentiment and business confidence, prompting secondary landlords to turn firmer on asking prices not only in areas near Cheung Sha Wan but also elsewhere in Hong Kong.
“With developers and landlords remaining confident about the market, we remain optimistic about its outlook amidst sustained housing demand,” said Knight Frank.
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