157 views
Image by falco from Pixabay

Residential property volumes to edge down in the near term

In Q123, volumes shrank by 31.5% MoM.

With the rise in interest rates, CBRE believes residential property transaction volume and prices will edge down in the near term.

On May 4, Hong Kong's major banks raised their base lending rate by 12.5 bps to a range of 5.7% to 6% in response to the U.S. Federal Reserve's interest rate hike of another 25 bps.

HIBOR rates are also likely to rise further "due to the increasing interest rate gap between Hong Kong and the U.S."

"Higher financing costs will weigh on residential property sentiment," CBRE said.

The effect of the global banking turmoil has been felt by the market in Q123 when transaction volumes shrank by 31.5% MoM.

Of the total sales, primary sales accounted for a larger share, with more than 1,500 transactions.

According to CBRE, primary sales will likely dominate the local residential market in the future.

"Developers may continue their aggressive sales strategy, which may lead to a less active secondary sales market," CBRE said.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!