Residential price falls 7% in 2023: report

The primary and secondary markets registered a record low of 43,002 transactions in total.

Residential prices fell by 7% in December 2023 despite a rebound in the first four months of the same year, the Hong Kong Property Review reported. 

The residential market recovered in the first few months of 2023, reverting the downward trend in 2022. However, the relatively high interest rate environment and weakened market sentiment, driven by the uncertain external environment weighed this down. 

The primary and secondary markets registered a record low of 43,002 transactions in total.

Meanwhile, underpinned by the demand from the influx of talent, domestic rents recorded a 6% year-on-year by December 2023 with market yields rising to 2.9% from 2.1%.

Completions of new private domestic units in 2023 were 13,852 units, made up of small or medium units and 35% fewer than those in 2022. Take-up at 15,670 units was 12% higher than that of 2022.

Vacancy at the year-end fell to 4.1% of the total stock, equivalent to 52,146 units as forecast completions in 2024 and 2025 stood at 22,267 units and 25,531 units respectively.