Heated property market defies cooling measures as property sales surge 17.1% in June

This translates to a total consideration of $80.8b.

Hong Kong’s heated property market shows no sign of slowing down as property sales rose 17.1% YoY on June to a total consideration of sale and purchase agreements of $80.8b, according to a government release. On a month-on-month basis, this represents an 18.8% increase.

Also read: Hong Kong leads global property prices growth in Q1

This translates to a total of 9.252 sales and purchase agreements for all building units. Residential purchase remained dominant after accounting for 6,713 units of monthly property sales for a total consideration of $68b.

Financial secretary Paul Chan maintained that the government will not ease property cooling measures at this time due to the prolonged surge in home prices. Home prices extended their steep climb after an index of secondary market home prices rose 1.67% for the 26th consecutive month in May. 

“The Government must carefully consider the impact of any adjustment on measures that could cause turbulence in the property market,” Chan said in a government statement. He also rejected calls to relax the mortgage ratio.

The administration earlier unveiled a series of housing initiatives to boost home supply in space-starved Hong Kong including taxing vacant first-hand private residential units.

Also read: Vacancy tax may not dampen Hong Kong’s runaway home prices

The median monthly income of households which do not own flats ($39,500) will also be used as the basis of the affordability test for the Home Ownership Scheme (HOS). Additionally, the Starter Homes pilot project will also be launched on a URA site at Ma Tau Wai Road to provide more home options for middle-income families.