Home deals sink to 10-year low

Hong Kong's residential property transactions for this year are anticipated to sink to a 10-year low, and home prices are expected to decline by up to 5 percent in the first half of the upcoming year, said Cushman & Wakefield.

Continuous interest rate increases and a declining stock market have led potential home buyers and investors to adopt a cautious approach, resulting in a slowdown in both primary and secondary market residential transactions.

The agency expects a total of 7,580 transactions in the fourth quarter of 2023, marking a 17 percent decrease compared to the previous quarter and a 10 percent decline year-on-year.

This is expected to bring the total annual residential transactions for the year to 42,970, the lowest in the past decade.

Edgar Lai, senior director of valuation and consultancy services at Cushman Hong Kong, said that their latest data indicates a 5 percent year-to-date decline in overall residential prices as of early December.

Looking forward, Rosanna Tang, executive director and head of research at Cushman Hong Kong, forecasts a potential further decline of 0-5 percent in home prices in the first half of next year.

In terms of transaction numbers, with developers expected to gear up for increased sales launches next year, she anticipates a 20 percent uptick in total residential transactions in 2024 compared to the low base this year, expecting the figures to range from 50,000 to 53,000 homes.

Regarding the commercial property market, Cushman's findings show Grade A office rents down 7.2 percent.

The retail market saw a gradual recovery, with high street vacancy rates in the fourth quarter dropping to 8.2 percent, and high street rents increased by 5 to 10 percent in 2023.

Centaline Property targets HK$4.4 billion in sales in the city next year, with HK$3.5 billion from the residential market. Earlier, it decided that all employees would receive a 4 percent salary increase next year.

Meanwhile, Midland Holdings (1200) has announced an increase in the salaries of all its employees including front-line administrative staff, with an average raise of 4 percent.

Henderson Land (0012) has sold 250 flats at The Holborn in Quarry Bay so far for HK$1.8 billion.

Sun Hung Kai Properties (0016) has re-released the price list for 50 flats of its Ho Man Tin project, Prince Central, which was launched in March last year.

Additionally, it is introducing a second price list, consisting of 11 flats, with a 7 percent cash rebate.

Prices for these flats start at HK$6.46 million.