Hong Kong Property Market Rebounds With A 57.2% Sales Increase In March

In a significant turn of events, Hong Kong's property market witnessed a substantial surge in sales during March, following the government's decision to retract all property cooling measures as outlined in its 2024-2025 Budget. This policy shift has injected new vitality into the market, as evidenced by the latest figures from the city's Land Registry.

According to a recent report by China Daily, there was a 57.2 percent increase in property sales in March compared to the previous month. This uptick is particularly noteworthy given the 41.7 percent decrease in sales from the same period last year. The total value of these transactions reached an impressive HK$37.4 billion, marking a 65.5 percent increase from February, despite a 45.7 percent decline on a year-on-year basis.

Residential properties were at the forefront of this resurgence, with 3,971 units changing hands—an increase of 67.2 percent from February and a decrease of 40.6 percent from the previous year. The total consideration for residential units stood at HK$30.1 billion, up by 57.4 percent compared to February, yet down by 48.1 percent compared to last year.

The Land Registry also noted an increase in activity with 367,409 land register searches conducted last month, indicating heightened interest and activity in the property market.

The catalyst for this remarkable recovery can be traced back to the Hong Kong Special Administrative Region (HKSAR) government's announcement on 28th February. The government declared that no special stamp duty, buyer stamp duty, or new residential stamp duty would be applicable for residential property transactions with immediate effect. However, it was clarified that sellers and buyers of residential properties would still be subject to ad valorem stamp duties at Scale 2 rates, which range from HK$100 ($12.8) up to 4.25 percent of the consideration.

This move marked a significant departure from the series of property market tightening measures introduced since 2010 aimed at cooling down the city's overheated housing market. These measures included notable interventions in November 2010, October 2012, February 2013, and November 2016.

The recent policy relaxation has evidently played a pivotal role in revitalizing Hong Kong's property market, as demonstrated by the surge in sales and transaction values in March. This development is being closely watched by market analysts and stakeholders alike, as it represents a key turning point in the government's approach to managing one of the world's most dynamic real estate markets.

With inputs from WAM