Hong Kong property deals double to near 3-year high as scrapping of cooling measures spurs buying demand

Hong Kong’s property transactions came close to a three-year high in April, with 9,880 units changing hands according to official data, as the removal of cooling measures continued to boost demand.

However, property sales this month are likely to moderate as fading hopes of a cut in interest rates dampen sentiment, analysts said.

The April sales, the highest since July 2021 when 9,957 units including car parks, shops, industrial and office units were sold, were roughly double the number of deals in March, which marked the first full month of a restriction-free property market. The total value of property sales surged by 125 per cent to HK$83.9 billion (US$10.7 billion) from HK$37.4 billion the previous month.

“Previously cautious buyers have actively entered the market since the withdrawal of market cooling measures,” said Eddie Kwok, executive director, valuation and advisory services, at CBRE Hong Kong. “We have also observed that investors and non-local buyers are returning to Hong Kong’s housing market – they are mainly mainland residents at the moment.”

The higher demand from mainland Chinese residents came thanks to the withdrawal of the New Residential Stamp duty, which allows the purchase of additional properties without paying extra stamp duty, as well as the removal of the Buyer’s Stamp Duty that was meant to levy non-permanent residents, Kwok said.