Home prices predicted to increase 5-10% over 2017

Will cooling measures control the surge?

Residential sales rebounded slightly by 6% month on month in June 2017, with the market having digested part of the cooling impact of policy tightening measures, according to Knight Frank.

Home prices continued on their upward trend. Official data show that they continued to climb in the 14 months ended June 2017, rising over 22%.

Developers continued to offer various sweeteners to attract buyers, and primary sales remained stable.

Here's more from Knight Frank:

Join Hong Kong Business community

The secondary market was relatively quiet, but a number of luxury residential developments registered record-breaking transactions last month, including Carolina Garden on the Peak, The Mayfair in Mid-Levels Central, Sorrento and The Arch in Tsim Sha Tsui as well as Mount Beacon in Kowloon Tong.

On the leasing front, the market entered the peak season before the new school year starts in August / September.

With reduced housing budgets, some tenants shifted to less prestigious areas and some landlords became more flexible in offering rent-free periods.

Potential buyers have started to feel the impact of rising rates, after the US Fed raised interest rate twice this year and major local banks raised mortgage rates slightly.

Combined with the impact of increasing housing supply, which could amount to 18,000 units in the second half of the year, we expect residential price growth to slow down in the coming months. Over 2017, home prices are expected to increase 5-10%.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Sheung Wan sea view tower put up for sale
The building offers approximately 36,516 square feet of gross floor area.
Hong Kong fortifies future with port and maritime industry focus
Authorities discussed strategies that will fuel the industry amidst the current geopolitical scene.
Luxury auto facility in Aberdeen listed for $180m
A premium automotive service facility spanning the first to third floors of Sun Ying Industrial Centre in Aberdeen is now up for sale, with an indicative price of $180m, according to its sole agent CBRE.