Residential market to post slow growth after border reopening
Buyers hold a wait-and-see approach until the economy improves.
The rise in residential market transactions will be gradual following the border reopening between Hong Kong and mainland China, according to JLL’s report.
Home prices may have regained ground but transactions continue to be at low levels. In January, residential market sales were 18.7% down from the 2022 monthly average of 3,755.
“Also, purchasing activities by non-local buyers were tepid. Only 34 transactions involving Buyer's Stamp Duty were recorded in January, compared to a monthly average of 53 in 2022,” the report also said.
Norry Lee, Senior Director of Projects Strategy and Consultancy Department at JLL in Hong Kong, said the stamp duty rates may be a positive step but it will be minimal in the residential market.
She said small savings from the stamp duty will be outweighed by rising mortgage rates and positive market sentiment will be short-lived.