There were less than 4,000 property sales contracts in Hong Kong in September, marking a new low for this year, according to the Land Registry of the Hong Kong Special Administrative Region Government. A total of 3,893 building sale and purchase contracts of various types were submitted for registration in September 2023, reflecting a 16.5% decrease from the previous month.
Among the submitted contracts, 2,862 were sales contracts for residential buildings, experiencing an 11.9% decrease from the previous month. The total value of building purchase and sale contracts in September amounted to HK$29.8 billion, which is a 14.7% decrease from the previous month. Specifically, the value of residential building purchase and sale contracts was HK$22.8 billion, indicating a 20.5% decrease from the previous month.
Chen Haichao, the head of Hong Kong’s Lijia Ge Real Estate Research Department, attributed the decline in property transactions to the property market conditions observed from mid-August to early September. The stagnant property market worsened due to local banks increasing interest rates, which led to the lowest transaction volume in nine months.
Chen Haichao highlighted that the transactions of first-hand private residences were primarily for medium and low-priced units, resulting in a low transaction volume. Additionally, the sales of first-hand private residences affected the second-hand private residences market, and the extreme weather experienced in early September further dampened the market, leading to overall sluggishness in the private residential market. As for the non-residential market, both the price and volume of industrial buildings, shops, and parking spaces also witnessed a decline.
Chen Haichao further explained that property sales have been sluggish in recent months, and the increased mortgage rates by major local banks since mid-September, along with the uncertain trajectory of US interest rates, have deterred prospective buyers from entering the market. Moreover, the upcoming release of the SAR government’s new policy address has caused the market to adopt a wait-and-see approach, as market participants are eager to determine the new policy direction before making any investment decisions.
The article concludes by reiterating that the content is sourced from China News Network and provides a disclaimer that the information should not be considered as investment advice. Individuals are advised to proceed with caution and assume their own risks when making financial decisions.