Residential market to hop on recovery track: Knight Frank

In February, transactions climbed 40.3% MoM.

Real estate expert, Knight Frank, believes that Hong Kong’s residential market will hop on the recovery track moving forward.

In a report, Knight Frank said the border reopening, slowing interest rate hikes and the revival of the local economy will support the market’s recovery.

“Overall residential transaction volume is expected to gradually pick up with a sharp rebound in buyers’ confidence, but a full recovery is expected to take time,” Knight Franks said.

In February, the city recorded  4,282 residential transactions, which is 40.3% higher than the January record.

The city also recorded a handful of notable transactions worth $100m in the same month, which Knight Franks said is a sign of “continued buyer appetite for prime assets.”

“On the leasing front, enquiries and home-viewing activity saw an uptick, given the return of Chinese and overseas ex-pats,” Knight Frank said.

“ Homes with a monthly rent of HK$60,000 or below were relatively active. One notable luxury transaction during the month was a house at Overbays in Repulse Bay, which was leased for HK$370,000 per month or HK$88 per sq ft,” the expert added.

With local economic activity returning to normal, Knight Frank said more developers also rushed to launch new projects.

“For instance, Wheelock Properties’ Koko Rosso in Lam Tin and Sun Hung Kai Property’s Novo Land Phase 2B in Tuen Mun received an overwhelmingly positive response. All 352 units in Novo Land Phase 2B were sold on the first day of the launch. The luxury market saw signs of Chinese mainland buyers returning after the border reopening,” the real estate expert said.