H. Kong property market surges in H1 ’24

Hong Kong’s property market witnessed a significant rise in home purchases by mainland Chinese buyers in the first half of 2024, following the removal of all additional stamp duties.

Mainland Chinese buyers made up 31 per cent of total transactions in the first six months of 2024, a significant rise from below 15 per cent before 2023.

The number of homes bought by mainland Chinese buyers surged by 70 per cent to 6,117 compared to the previous year. The total value of these purchases reached HK$70.5 billion ($9.03 billion), a 42 per cent increase year-on-year.

The increase in mainland Chinese purchases follows Hong Kong’s removal of additional stamp duties in February 2024. This, along with declining home prices and higher interest rates, has made Hong Kong more appealing to non-local buyers.

China’s property market is in a multi-year slump, with new home prices dropping at their fastest rate in nine years in June 2024. Property sales and investments are also declining.

Despite an initial surge in private home prices due to mainland Chinese purchases, Hong Kong saw a 1.2 per cent drop in May 2024.

Hong Kong remains the world’s least affordable city for housing for the 14th year in a row, according to Demographia’s survey.

Attribution: Reuters