Hong Kong property slowdown masks future growth

Hong Kong's property market is expected to grow after the Lunar New Year although it has slowed down ahead of the festival.

Analysts said that the local market will also be boosted by the recent mainland cooling measures.

Sales at the 10 benchmark residential projects dropped to 56 last week from 66 a week ago.

"Many people are busy preparing for the Lunar New Year, and many are on holiday overseas," Buggle Lau Ka-fai, Midland Realty chief analyst, said in explaining the drop.

Lau expects sales to pick up after the holiday as sentiment is not bad and more new residential projects are expected to go on the market.


Developers have also been promoting Hong Kong's projects in the mainland.

Sun Hung Kai Properties  will start selling homes in Imperial Cullinan in West Kowloon, in UniQ in Shau Kei Wan and Park Nara in Yuen Long, while Cheung Kong will sell its new project Uptown in Yuen Long.

"Thanks to China's cooling measures, mainlanders with money may consider Hong Kong because our policy does not limit their purchases," said Patrick Chow Moon-kit, head of research at Ricacorp.

"And with the yuan appreciating, there is a big incentive for them to park their money in the Hong Kong property market."