Super luxury homes sustain demand but sales remain weak

Record luxury property transactions have boosted confidence in the market. 

The demand for super luxury properties remained in the first half of the year, but sales volume remained low, Knight Frank reported. 

Amongst the record transactions seen during the period are the sale of an 8,032-square feet house at No.15 Shouson, Deep Water Bay for HK$870.2m; and a 6,867-sq-ft penthouse at Duke’s Place in Jardine’s Lookout for HK$680. 

“These recent luxury property transactions have helped bolster buyer confidence in the luxury market,” Knight Frank reported. 

“On the leasing front, the luxury segment was relatively quiet, but there were more enquiries and home viewing activities in the mass market. Leasing activity was more  active for small and medium-sized units.”

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The overall sales activity in the residential market slowed down in June, dropping 22.2% month-on-month to 4,826 cases.

Sales revenue during the month also declined by 33% to HK$544.7m, whilst cases decreased by more than 10%. 

“Going forward, if the border control and other restrictions are further relaxed, demand from expatriates and Mainland investors is expected to return to the market,” knight frank said. 

“As Hong Kong’s economy gradually returns to normal, we expect the high-end residential market to follow.”