Categorized | International

Hong Kong’s Luxury Property Sales Falter

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Luxury residential real estate property sales in Hong Kong have dropped by more than eleven percent in the past month. The overall sales volume for luxury homes has now reached its lowest level in more than two years.

The decline in sales can be attributed to the decision of many buyers to wait as they watch to see what happens with the stock market, and also the pending housing policy that will be announced in the coming weeks.

The luxury market that has been the hardest has been Hong Kong’s luxury apartment market. Sales in that sector dropped more than sixty-three percent in the last month alone.

Despite the significant declines in sales within the luxury housing market, prices remain fairly stagnant. Prices across all the luxury residential property sectors fell by only a half of a percentage point.

While the choice of many buyers to wait on buying a luxury home has certainly had an effect on the overall volume of sales, so too has the overall lack of supply. In various sectors through Hong Kong, there are not enough luxury homes to meet the overall demand. While a variety of new homes are being developed in the region, they will not be ready immediately in order to match the overall demand.

Because the housing supply remains very limited, many analysts expect Hong Kong’s residential real estate market to continue seeing declines in the overall volume of sales. There is little to no concern regarding the general state of the market, as demand is still very high. Furthermore, the economy in Hong Kong has proven itself to be incredibly strong with a very low unemployment rate.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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