Hong Kong’s private housing prices increased for the third consecutive month in March and up 1.4% from February as a result of the reopened border with China and a flurry of new launches by developers offering their properties at competitive pricing.
According to official data released on Wednesday, housing prices increased last month after February’s 2.4% increase was revised upward.
After falling 15% in 2022, prices in the financial center—which survey firm Demographia named the least affordable city in the world for the thirteenth straight year—rose 5% in the first quarter.
However, after the first surge, it is anticipated that transaction volume will fall in April as the initial rush to buy has passed and some potential buyers have been turned off by recent market volatility.
Realtor Centaline anticipated a 30% drop in transactions from March to April.
According to Martin Wong, Greater China head of research and consultation at consultant Knight Frank, “factors like high interest rates and inventory in the primary market will still weigh on the home price recovery in the near term. I expect prices in the second quarter to see bigger pressure.”
The property market was negatively impacted by a bleak economic outlook, increased mortgage rates, and an outbreak of COVID-19 at the start of the year, causing the dip in 2022 to be the first yearly drop since 2008.
