Hong Kong luxury home prices to increase by up to 5% in 2022
The growth of Hong Kong home prices hit a 2-year high this year. Prices hit a record high in August 2021 and growth has since been slowing albeit still at historical highs.
Martin Wong, Knight Frank’s Director and Head of Research & Consultancy, Greater China, said, “We expect further growth of 3% in 2022. The anticipated opening of the Hong Kong – Chinese mainland border should boost the luxury housing market further, and luxury housing prices could rise by 3-5% in 2022.”
Here’s more from Knight Frank:
Hong Kong will continue to maintain a low interest rate environment in the next 12 months, encouraging more buyers to enter the market, with some second-hand purchasers moving into the primary market.
The total volume of transactions in 2022 may fall back to 60,000-65,000, with the primary market accounting for 30% of the total. The "Northern Metropolis" concept will increase the long-term housing supply. In the short term, it will stimulate property prices in northwestern New Territories and more residential re-zoning projects nearby. The ratio of land premium to land sale revenue is expected to reach its highest since 2015. Read More…
