Residential price edges down by 1.4% MoM in August

August marked the fourth month of price decrease. 

Residential prices dropped by 1.4% MoM in August 2023, marking four consecutive months of decline. 

On the other hand, residential rents have been recording steady increases for eight months, rising 5.6% YTD. 

Meanwhile, sales in the residential luxury market for September 2023 were similar to 2019 when transaction volume dropped to below 100 units. 

In September 2023, 92 high-end residential units worth more than $20m exchanged hands.

Despite a drop in sales, developers were still able to offload their assets at a relatively good price, indicating that quality assets are still able to capture buyers.

In the primary market, four units worth more than $100m exchanged hands.

According to CBRE, there have been speculations that the government will relax the Buyer's Stamp Duty (BSD) and the revised Ad Valorem Stamp Duty (AVD) during the policy address.

BSD relaxation may release purchasing demand from non-HK Permanent Residents and company buyers, said CBRE.

Loosening AVD, on the other hand, may release purchasing demand from non-first-time home buyers.