Mass residential prices to decrease 5%: JLL

This is due to the dampened sentiment in the first quarter of 2022.

Mass residential prices are seen to drop around 5% this year on the back of the dampened sentiment in the first quarter (Q1) of 2022, real estate services firm, JLL Hong Kong, said.

In a statement, JLL’s Hong Kong residential sales market monitor revealed that the current mass residential prices went down by 3.2% quarter-on-quarter (QoQ) in Q1 2022 which was driven by the fifth wave of COVID-19.

It then downgraded its forecast for 2022 mass residential market capital values to decrease 5% compared to its previous forecast that it would rise 0% to 5%.

Despite the decrease in mass residential capital values, JLL Hong Kong Chairman Joseph Tsang said he expects the activity level in the housing market to recover to a high level similar to last year due to pent-up demand from potential buyers.

“Driven by pent-up demand, potential buyers will support the housing market upon the relaxation of social distancing measures,” he said.

“Judging from the high volume of private residential units pending for pre-sale consent approval, we expect a high concentration of launches in the second half of 2022, with potentially over 20,000 units to be issued with pre-sale consent in the year, similar to the previous peak in 2018. Combined with the factor of increasing interest rates, housing prices will be under pressure," Tsang further explained.

Data from Land Registry showed that residential sales volume posted the lowest level in two years at 10,056 deals in Q1 2022, a drop of 33.8% QoQ. 

Most developers sought to postpone new launches after restrictions in January became stricter which resulted in lowered market activity and dampened sentiments.

With this, sales transactions in the primary market logged a more drastic drop of 63.2% QoQ, compared to the decline of 20.8% in the secondary market.

Follow the link for more news on

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

Port cargo throughput falls 11.1% YoY in Q3
The decrease in both inward and outward port cargo drove the overall decline.
Gov’t proposes regulatory regime on the use of autonomous vehicles
The bill will be up for the Legislative Council’s reading on 14 December.   The proposed new regulatory framework for the trial and specified use of autonomous vehicles –- Road Traffic (Amendment) (Autonomous Vehicles) Bill 2022 –- will be introduced to the Legislative Council on 14 December.   The Transport & Logistics Bureau, which proposed the bill, said autonomous vehicles technology has the promising advantage of enhancing road safety, optimising the use of limited road space and thereby reducing car accidents arising from human error.    In the Hong Kong Smart City Blueprint 2.0 published in December 2020, one of the smart mobility initiatives is to facilitate the technological advancement and industry development in Vehicle-to-Everything and autonomous vehicles.   The government then proposed amending the Road Traffic Ordinance and also empowering the Secretary for Transport & Logistics to make new subsidiary legislation, Autonomous Vehicles Regulation, to establish a suitable regulatory regime to facilitate the trial and specified use of autonomous vehicles.  
7 high-end properties up for sale 
The prices of the properties range from  $18.2m to $550m.


Managing conversations to increase conversions
Enterprises that used chat management platform, imBee, saw a 25% increase in sales. 
Where to invest your millions in real estate
Realtors cited two property types that can offer higher upside potential in return.
Property market ends downcycle 
Real estate expert, Cathie Chung, said that the market will have a reset by 2023.