Rate cut and soaring stocks may boost housing market

With 109,000 available housing units, pressure on secondary prices is expected to persist.

The recent rate cut and the recent soaring stocks are good for Hong Kong’s property market amidst the weakening economy and continuous conservative price offering, according to JLL. 

With 109,000 available housing units and potential supply in the primary market, pressure on secondary property prices is expected to persist. Additionally, the primary market recorded 94 transactions, representing just 10.2% of the 918 transactions seen in the first week after the rate cut.

Cathie Chung, senior director of Research at JLL in Hong Kong, said the market is currently facing challenges, including decelerating income growth, deteriorating business confidence, and weakening government financial position. 

Meanwhile, SHKP launched the first batch of 182 units for 'Cullinan Sky (Phase 1)' at an average price of $19,668 per square foot, marking a seven-year low for new developments in Kai Tak.

“Restoring homebuying sentiment and achieving a sustained recovery will take time and will largely depend on broader economic revitalisation and the city's capacity to reignite business growth,” Norry Lee, senior director of Projects Strategy and Consultancy Department at JLL in Hong Kong, said.