Hong Kong’s residential property market has regained momentum in recent months amid a string of record-breaking deals. But analysts warn that the rally is likely to cool in the second half of the year, as a weaker stock market weighs on investor sentiment.
A string of huge deals in the city has generated buzz in recent days, with a five-bedroom flat at Sun Hung Kai Properties’ Cullinan Harbour in Kai Tak selling on Monday for HK$247.9 million (US$31.6 million) – a record for the project and for the district.
Last week, one of the flats at Victoria Harbour in North Point also changed hands for HK$200 million, or HK$84,282 per square foot – the highest price ever recorded in Hong Kong Island East.
These trophy deals, however, do not reflect the overall trend in the luxury market, according to analysts. Consultancy CBRE said the total value of luxury residential transactions fell 30 per cent to HK$8.76 billion in the second quarter compared with the previous three months, while the number of deals dropped from 70 to 48.
“The luxury market is closely linked to the stock market performance,” said Eddie Kwok, executive director of valuation and advisory services at CBRE Hong Kong.
