Residential capital values drop by 1.3% MoM in September

Transaction volume in the primary market fell to 532 units.

Residential capital values declined by 1.3% month-on-month (MoM) in September, following a 1.5% decline in August, according to JLL’s Hong Kong Property Market Monitor report. 

The transaction volume in the primary market fell to 532 units, and the secondary market saw a further decline to 2,327 units, resulting in an overall MoM decrease of 22.1%.

The report noted that the recent rate cut, combined with a declining price level, has improved home affordability and is expected to stimulate a recovery in homebuying sentiment in the primary market amongst local end-users.

Moreover, it was also noted that the monetary easing and policy in Mainland China could generate a wealth effect, potentially driving sustained home purchases from Mainland Chinese buyers.

With a product quality and average pricing of $19,668 per sq ft, SA, 'Cullinan Sky' in Kai Tak sold all units put up for sale within a single day during both its first and second launches, offering 204 and 238 units, respectively.

Amongst major luxury sales transactions, a unit at 'Mont Verra' in Beacon Hill was sold for $220m, or $48,277 per sq ft, SA.