Home sales rose 4.9% in May to 8,208 units

One house at Mount Nicholson sold for $916m.

Residential sales volume rose 4.9% MoM to 8.208 units in May to extend a steep uptrend in March and April, according to property consultant Knight Frank.

Two notable transactions recorded in May comprised of two units located in The Peak district. One house at Mount Nicholson sold for $916m, whilst a low floor unit at Cameron House sold for $280m. Another property at 50 Stanley Village Road in Island South sold for $168.8m, Knight Frank noted. 

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Whilst the latest official data showed that overall residential property prices rose 3.2% MoM in April, Knight Frank Greater China’s director and head of research and consultancy David Ji noted that given the time lag, however, the official statistics has not fully reflected the latest market conditions. 

“Owing to external uncertainties and the slowdown in local economic activity, it was reported that several banks lowered their mortgage valuations by 2–5%, especially for secondary homes in non-urban areas,” he said.

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Hong Kong’s market sentiment was noted to have been downbeat since 10 May, when the US slapped new tariffs on China imports. The stock market indices also dropped which in turn affected buying confidence. 

“In view of the worsening macro environment, more and more buyers have adopted a wait-and-see attitude,” Ji added, with about 160 forfeitures of preliminary deposits in the first five months of the year, equivalent to about 70% of the total in 2018, according to market data.

“In a recent case at The Pavilia Hill in North Point, the buyer cancelled the transaction of a penthouse duplex unit, forfeiting the deposit of $7.55m,” he highlighted.