Mainland Chinese investors spur Hong Kong’s residential market

Luxury properties are a favourite amongst the buyers

According to the World Property Journal’s take on JLL’s latest Residential Market Monitor report, Hong Kong currently has 79,000 new homes that could take up to five years to sell. The past year recorded low residential transaction volume at 36 percent, which meant an increasing average of unsold yet completed units. Yet, with the borders now reopened, industry experts predicted an  increase in residential demand from mainland Chinese.

In fact, the South China Morning Post reported that mainland China residents are purchasing more homes within Hong Kong. The reopening rekindled the interest of the Chinese in purchasing property in the city, aiding in the recovery from the 75 percent drop during the pandemic.

Most of the interest has been poured on luxury homes and properties.  Luxe properties have been bought with a price range near HKD300 million (USD38.41million).

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Alongside the residential sector’s growth due to mainland Chinese buyers, Oxford Economics predicted the stabilisation of housing prices in Hong Kong this 2023 due to the positive economic outlook, stabilised mortgage rates in the second quarter of 2022, and the more lenient stamp duty measures for foreign buyers. 

Stamp duties for a foreigner’s first purchased home will be refunded once they become permanent Hong Kong residents. This would further convince mainland people residing in Hong Kong to purchase or invest in residential property there, thus continuing the growth of the sector, together with the reopening of borders and government measures.

The Property Report editors wrote this article. For more information, email: [email protected].