Hong Kong Realtors have good reason to smile because this year, there have been far more sales than in the past few years. Within 26 days of 2018 buyers and investors had already spent an astonishing HK$ 56.42 billion, the equivalent of US$ 7.22billion, on Hong Kong apartments, car parking spaces and commercial properties. The last time a figure of this kind was recorded was in 2015, where within the same timeframe, HK$ 58.03 billion had already been spent on real property.
What caused the Boost in Sales? Experts say that two major factors have played a role in the boost of sales of Hong Kong Property. One is the stock rally that has created an unimaginable wealth effect in the region. The second is the sale of various government properties in prime areas. Both these factors have resulted in people having cash to spare, and most of them are happy to splurge it on a Hong Kong apartment or other type of real property, says Derek Chen, who works at Ricacord Properties.
Statistics show that 828 new flats have already been sold within the first few days of this year. This is a 30.8% rise from last year. Also, 4079 used flats changed hands within the same time frame, which represents a 52.6% rise from last year.
A transaction value of HK$ 12.3 billion for new flats was recorded this year, which is a 39.2% rise from last year. For used flats, the transaction value was at HK$ 30.7 billion which represents a 73.4% rise from last year. The rest of the money came from the sale of commercial units.
Two prime government properties helped propel Hong Kong property sales in their neighborhood a great deal. One was the sale of the Kwun Tongs land on Anderson Road for HK$ 3.11billion, which increased sales of used flats in Kowloon by 20%.
Other districts are also enjoying boosts in the sale of properties, both residential and commercial. On Monday for instance, a buyer spent a solid HK$9.8 million on a unit that measures 653 sq. ft. at the Discovery Park in Tsuen Wan. This is a record that is yet to be broken in the area. Another buyer spent HK$ 271million on a large 4370 sq. ft. house on the Hong Kong Island. This means that per ft., he spent HK$ 62, 140 which is yet another unbroken record. It is estimated that 204 flats were sold over a single weekend. Talk about people splurging on properties!
The demand for micro flats is also far higher than the supply. Nothing proves this better than the fact that 300 people competed for the available first batch of 50 micro flats on the Astro Complex. It is expected that people will still be willing to buy the second batch even if the price is increased by 3-5%.
Although nothing in the near future is expected to suddenly affect the market negatively, the Chinese New Year might not do it any good. In previous years, the market is always lowest during this period. It is expected that it will regain momentum by March.