Hong Kong weekend home transactions jump to three-year high

Shares of Hong Kong’s greatest developers climbed on Monday morning as the figures spurred optimism that the loosening of cooling measures will certainly remain to boost real estate demand.

For now, financiers are welcoming the pickup in demand. New World Development’s shares rose as much as 2.8% on Monday morning in Hong Kong. Henderson Land Development got 2.3%, while Sun Hung Kai Properties climbed up beyond 1%.

North Gaia Yishun Avenue

Last month’s relaxing means international buyers and existing-home owners no longer need to pay increased taxes on proceedings. Rather, every person is subject to the regular price capped at 4.25%. In addition, home loan guidelines were loosened up to enable some property buyers to purchase properties with lesser deposits.

Secondary residential property prices in the week ended March 3, that included 4 days after the lifting of the curbs on Feb. 28, fell 0.8% from a week earlier, the most up to date Centaline data prove.

A total of 37 condos altered hands on the weekend, up 48% from a week beforehand. Hong Kong property buyers have been rushing to grab homes after the authorities got rid of extra property levies last month to enhance the marketplace.

Still, experts at S&P Global Ratings expect home values will likely remain weighed down by high interest rates and enough supply. UBS Team AG estimates rates are going to slide by 5% in 2024, despite the policy change.

Hong Kong’s new-home sales rose 10 times in the first five days after the authorities removed the cooling means compared to 2 months ago, according to Midland Realty. Henderson Land’s latest housing project additionally gained from the tax obligation cuts. The real estate investor offered nearly 200 residences in a couple of hours on Thursday shortly after requests were oversubscribed by 34 times.

Hong Kong’s 10 biggest residential estates saw deals go up to the highest in 3 years last weekend, according to Centaline Property Agency, as the market continued to benefit from latest relaxing moves.

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