Hong Kong Property Transactions Reaching Historical Low
July 7th, 2016
The total agreements for sale and purchase of building units in Hong Kong ended at 26,571 in the first half this year, the total transaction number is 18% lower than the second half last year's 32,523 and 39% lower than the first half last year, according to the latest data released by the government.
Total consideration for the sales reached 189.49 billion (USD 24.43 billion) in the latest quarter ended June, it is 20% less than second half last year, while 39.2% less than the first half last year (year-on-year basis). The number is reaching the lowest record in the the government's transaction data tracking history.
Overall in the first quarter, May-released figures showed home sales in April climbing up to 4,586, but still remaining below the historical long-term monthly average of 7,656, according to property agency Jones Lang Lassalle (JLL) research, adding whilst secondary sales still dominated the market in terms of volume, primary sales amounted to 51% of total considerations.
Meanwhile, Savills research team sees a turbulent stock market, concerns over the mainland economy and tighter local credit availability all contributed to a quiet luxury residential market in the first quarter, luxury sector prices declined in both the Hong Kong Island and Kowloon markets with primary launches dragging down secondary prices.
At the beginning this week, the Rating and Evaluation Department released Hong Kong private residential property price index for May ended 275.5 , 0.73% higher than April, 10% lower than peak of 306.1 of last September. In earlier reports various has forecast Hong Kong's residential property prices will dive up to 25% in the recent two years.
The article was originally published on 07 - 07- 2016 (11:45AM GMT+800)
The article was last updated on 11- 07- 2016 (paragraph v was revised)
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