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HONG KONG: An expected prolonged period of ultra-low mortgage rates, combined with a low supply of new residential homes are likely to keep home prices firm for the rest of 2010, according to Knight Frank’s latest report on the Hong Kong Luxury Residential Market.
Home prices increased across the board in July with the secondary luxury home prices registering the fastest growth in six months at 2.3%, while the secondary mass home prices showed its most significant increase in five months at 2.5%.
According to the Land Registry, residential sales volume rose 41.9% after two months of decline across all price ranges in July after two months of decline, said Knight Frank.
Record-breaking transactions were observed in July. A luxury residential site in Mount Nicholson Road on the Peak was auctioned for more than HK$10 million (RM4.03 million), exceeding market expectations.
Meanwhile, a unit each in Sun Tower in The Arch, Tsim Sha Tsui and The Belcher’s, Mid-Levels West were sold from HK$26,395 psf and HK$14,619 psf respectively.
The primary market also registered record-high prices; a new 13,000 sq ft house at 11 Headland Road in Island South was sold for HK$660 million, making it the most expensive new house in Hong Kong.
A flat in Fu Keung Court in Wong Tai Sin under the Home Ownership Scheme, a subsidised-sale public housing programme managed by the Hong Kong Housing Authority hit a record high price of HK$5,612 psf, making it the most expensive flat in Kowloon.
Over at Tai Wai, New Territories, a record-high price of HK$4,990 psf was registered for a unit in Grandway Garden, now the most expensive flat in that area.
Several new developments reported brisk sales in the primary market. The Hermitage in Tseung Kwan O has a take-up rate of 90%, and Lime Habitat in Tai Kok Tsui has fewer than 10 unsold units. About 20 units at Lime Habitat were put up for sale immediately on the secondary market at an appreciated price of 20%.
The rising house prices saw panic-buying from owner-occupiers in the small-flat market for units priced below HK$2 million.
Rental yields of these units stood at about 4%, far exceeding the prevailing Hong Kong Interbank Offered Rate (HIBOR)-based mortgage rate of around 1%, said Knight Frank, which attributed to the lack of leasing stock in the market.
The luxury residential leasing market entered its low season in July as most expatriates were occupied with relocation or refurbishment issues. The mass residential market however, was active with the average rent inching up 2.3%, which the fastest growth in nine months.
With the reality of higher rents upon lease renewals, many have opted for home ownership. This has strengthened end-user demand, said Knight Frank.
Home prices increased across the board in July with the secondary luxury home prices registering the fastest growth in six months at 2.3%, while the secondary mass home prices showed its most significant increase in five months at 2.5%.
According to the Land Registry, residential sales volume rose 41.9% after two months of decline across all price ranges in July after two months of decline, said Knight Frank.
Record-breaking transactions were observed in July. A luxury residential site in Mount Nicholson Road on the Peak was auctioned for more than HK$10 million (RM4.03 million), exceeding market expectations.
Meanwhile, a unit each in Sun Tower in The Arch, Tsim Sha Tsui and The Belcher’s, Mid-Levels West were sold from HK$26,395 psf and HK$14,619 psf respectively.
The primary market also registered record-high prices; a new 13,000 sq ft house at 11 Headland Road in Island South was sold for HK$660 million, making it the most expensive new house in Hong Kong.
A flat in Fu Keung Court in Wong Tai Sin under the Home Ownership Scheme, a subsidised-sale public housing programme managed by the Hong Kong Housing Authority hit a record high price of HK$5,612 psf, making it the most expensive flat in Kowloon.
Over at Tai Wai, New Territories, a record-high price of HK$4,990 psf was registered for a unit in Grandway Garden, now the most expensive flat in that area.
Several new developments reported brisk sales in the primary market. The Hermitage in Tseung Kwan O has a take-up rate of 90%, and Lime Habitat in Tai Kok Tsui has fewer than 10 unsold units. About 20 units at Lime Habitat were put up for sale immediately on the secondary market at an appreciated price of 20%.
The rising house prices saw panic-buying from owner-occupiers in the small-flat market for units priced below HK$2 million.
Rental yields of these units stood at about 4%, far exceeding the prevailing Hong Kong Interbank Offered Rate (HIBOR)-based mortgage rate of around 1%, said Knight Frank, which attributed to the lack of leasing stock in the market.
The luxury residential leasing market entered its low season in July as most expatriates were occupied with relocation or refurbishment issues. The mass residential market however, was active with the average rent inching up 2.3%, which the fastest growth in nine months.
With the reality of higher rents upon lease renewals, many have opted for home ownership. This has strengthened end-user demand, said Knight Frank.
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