The average transaction price in the primary market hit a new 12-year low of HK$9.25 million this year, according to Midland Realty, as the developers poured low-priced flats into the market and remained cautious about price rises.
As of August 21, small and medium-sized units priced lower than HK$6 million hit a 12-year high in transactions this year, surging 92 percent yearly to 6,759.
Chief analyst Buggle Lau Ka-fai said that the trend was due to its higher rental yield and more such offerings by developers in the market.
In contrast, transactions of property with prices ranging from HK$10 million to HK$20 million dropped 16.9 percent to 1,671, while that of housing priced from HK$20 million to HK$50 million fell the most by 24.2 percent.
Transactions in the primary market have recorded over 12,500 in the period, surpassing that of 2022 and 2023 in total.
The property agency expected that Hong Kong's home prices would grow 3-5 percent this year, driven by lower interest rates, decreased stamp duty, and high rental yield.
The full-year transaction of the primary market was also projected to jump over 22 percent year-on-year to a 12-year high of 19,000, while that of the secondary market would achieve a four-year high of 45,000.
In addition, Midland said that the proportion of local buyers in the registration volume for primary private homes reached 66.8 percent, and their share by value reached 55.7 percent, with both marking the first increase since 2022.
In the secondary market, local homebuyers accounted for 83 percent, ending a four-year consecutive downward trend.
The active transactions of small and medium-sized units, coupled with interest rate cut expectations that lower mortgage costs, would further stimulate local buyers to enter the property market, the company said.
HELEN ZHONG
