Global elite still eyeing Hong Kong residential market

Despite previous introduction of stamp duty measures.

While various stamp duty measures introduced last year were aimed to dissuade overseas buyers from the residential market, it has been noted that there is still continual interest in Hong Kong from the global elite.

According to a release from CBRE, Jennet Siebrits, Head of Residential Research, CBRE says, “UK buyers are increasingly active in overseas markets. Those most popular locations with wealthy ex-pats include Hong Kong and Dubai.”

Looking forward, CBRE expects the divergence between different segments of the Hong Kong market to continue, both in terms of sentiment and underlying dynamics.

Here's more from CBRE:

The luxury market is likely to be relatively resilient, given the limitations on existing stock and future supply, whilst in the primary market, activity levels are anticipated to increase, reflecting a pick-up in supply, as well as the fact developers are still offering discounts.

Private housing supply in Hong Kong for 2014 is projected to increase by around 17% year-on-year, which equates to an additional 2,270 units, compared with 2013 estimates.

This would bring the total housing supply for the year to 15,820; however, this figure is still well below the government’s target of 20,000 new units per year.

Even though this additional supply may have limited impact on the overall mass market prices this year, its geographic concentration is likely to have a noticeable impact at a sub-market level, with a focus on the New Territories—in particular Yuen Long, Tsuen Wan, and Sha Tin—which combined will assume 40% of all new supply. Slight price movements could be reflected in these specific areas.