Stronger yuan drives nearly doubling HK home sales by mainland buyers in first two months of 2025: Morgan Stanley

Chinese mainland homebuyers snapped up 2,600 flats in Hong Kong during the first two months this year, representing a growth of 91 percent from a year ago, thanks to the appreciation in the yuan, according to Morgan Stanley. 

The transactions amounted to HK$28.2 billion, surging 136 percent year-on-year, the bank said.

As of February, the number of Hong Kong's home sales from mainland buyers has maintained above 1,000 for 12 consecutive years, it added.

Morgan Stanley attributed the robust performance to the stronger yuan, attractive rental yield, and positive gross carry, as well as the overall improving home prices in the city.

By the end of February, the offshore yuan stood at 1.1406 against the Hong Kong dollar, appreciating 6.9 percent year-on-year.

The bank also expected that nearly 2600 units of La Mirabelle in Tseung Kwan O, which was co-developed by five developers including Sino Land (0083), and CK Asset's (1113) Victoria Blossom in Kai Tak, which offers about 1,000 flats, will extend the momentum in sales.