Mainland Chinese purchases of HK homes rise 13 pc in first nine months

Mainland Chinese buyers have stepped up their purchases of Hong Kong homes this year, with property registrations involving mainland investors rising 13 percent year-on-year in the first nine months, according to data from Midland Realty.

The first nine months of this year saw approximately 9,700 transactions from mainland buyers in the local residential property market, totalling over HK$90 billion.

The average property purchased by mainland buyers in the first nine months was approximately priced at HK$9.34 million, seeing a year-on-year increase of about 20 percent, indicating a buyers’ preference for high-value properties. 

Sammy Po Siu-ming, chief executive of Midland Realty's residential division, believes that the influx of talents and students from the mainland, along with interest rate cuts and a strong stock market, have boosted mainland buyers' confidence in purchasing local property.

He noted an increase in buying properties for lease, highlighting that the rental yields for small and medium-sized flats in Hong Kong generally exceed 4 percent, while that for mansions near 3 percent, significantly higher than the 1 percent in mainland China. 

Mainland buyers account for approximately 22 percent of total transactions by volume and 30 percent by value, according to Po, with expectations that these figures could rise to 25 percent and 35 percent, respectively.

Po further revealed that mainland buyers are particularly interested in properties in Kai Tak, the Central and Western District, Tseung Kwan O, Wong Chuk Hang, and Cheung Sha Wan, as mainland buyers mainly consider factors such as transportation and shopping facilities.