Midland Realty released the latest information yesterday, pointing out that in the first half of this year, there were about 51 first-hand luxury housing transactions of more than 100 million yuan in Hong Kong, an increase of 1.8 times compared with 18 cases in the second half of last year.
Market participants also continued to be optimistic about the performance of luxury homes in the second half of the year......
01
The Hong Kong government has fully withdrawn the spicy and released a lot of purchasing power
Li Chung-yin, director of Midland Realty's Hong Kong Island, said that based on the "First-hand Residential Property Sales Information Network" and market data, Hong Kong Island accounted for about 21 of the 51 luxury residential transactions, an increase of about 3.2 times compared with the second half of last year.
Fong Fuyi, chief regional sales director of Midland Realty's Peak South District, said that the Peak South District is an important indicator of the luxury housing market, especially super luxury homes. The Hong Kong government has completely withdrawn the new residential stamp duty (NRSD) and other property market taxes, unleashing a large amount of purchasing power, and the luxury housing market has obviously benefited. According to the bank's data, the Peak South District recorded about 25 transactions in the first quarter and 31 transactions in the second quarter, up 24% quarter-on-quarter. The transaction value increased by approximately 12% from MOP2,946 million to MOP3,293 million. In the first half of the year, about 56 transactions were recorded in the district, an increase of about 1.24 times compared with about 25 transactions in the second half of last year and a new high after the second half of 2021. The turnover was $6.239 billion, nearly double from about $3.212 billion in the second half of last year.
In the first half of the year, the number of first-hand transactions of luxury homes exceeding 100 million yuan in Hong Kong increased by 1.8 times compared with the second half of last year.
According to the records of Midland Realty Branch, about 16 of the above 56 transactions in the Peak South District were transactions exceeding 100 million yuan, an increase of 167% from only about 6 transactions in the second half of last year. Among them, about 13 were western-style house transactions, an increase of about 86% compared with about 7 transactions in the second half of last year. However, the number of transactions involving the transfer of shares of the company remained in the single digits, with only about 3 cases recorded, a decrease from about 5 cases in the second half of last year.
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The lack of supply is mostly for the elderly
Lee Chung-yin also pointed out that the supply of bungalows has always been scarce. According to the RVD, as of the end of 2023, excluding village houses, the number of bungalows in Hong Kong was only 19,668, accounting for only about 1.5% of the total number of flats in Hong Kong.
Not only that, Midland also pointed out that the supply of new houses on Hong Kong Island is decreasing. In the past decade (2014 to 2023), only 267 bungalows have been completed on Hong Kong Island. Among them, the supply of newer bungalows with a building age of 10 years or less is even rarer. As of the end of 2023, there are about 2,733 bungalows in Hong Kong Island, of which only 10% are 10 years old or less, only about 14% are more than 10 to 20 years old, and 76% are more than 20 years old.
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It is expected that luxury property prices will still rise
As for the performance of luxury homes in the second half of the year, market participants are optimistic. Chen Yucheng, director of the real estate department of Dongli Real Estate, predicts that the mainland's GDP is improving, and professionals are arriving in Hong Kong one after another, and it is expected that the price of luxury homes in the market will still rise in the future.
Looking ahead, as the Government actively competes for talents, since the launch of the enhanced talent admission arrangements at the end of 2022, as of the end of June this year, more than 320,000 applications have been received under the various talent admission schemes, of which nearly 200,000 have been approved, and more than 130,000 talents have arrived in Hong Kong. In addition, applications for the new Capital Investment Entrant Scheme (CIES) have been approved one after another, and even though the new scheme does not include investment in residential properties, investment immigration targeting individuals with higher net worth will bring new housing demand to Hong Kong, especially luxury residential properties. The bank believes that the transaction volume in the Peak South District will further increase in the second half of the year compared to the first half of the year, and it is expected that super luxury homes will continue to be sought after by buyers as there are many new projects in the district and adjacent districts in the second half of the year.
The top 10 luxury houses in the southern district are mainly old buildings
Mainland tycoons are chasing new and old first-hand luxury homes, but in the first half of the year, the top 10 luxury homes in the Southern District were still dominated by old property transactions. According to Midland data, as of mid-July this year, the transaction value of 4 houses at No. 46 Plantation Road is the highest in the current luxury housing market.
House 4 at No. 46 Planting Road, with a total floor area of about 16,986 square feet, was transacted for about $1.1 billion, with a saleable price of about $64,800. The property at 46 Planting Road was completed in 2007 and has been around for over 17 years.
THE SECOND HIGHEST TRANSACTION PRICE WAS MOUNT NICHOLSON, A STRATA UNIT CO-OPERATED BY WHARF (004) AND NANFENG, WITH AN USABLE AREA OF ABOUT 4,579 SQUARE FEET, WHICH WAS TRANSACTED FOR ABOUT $600 MILLION AND A SALEABLE SQUARE FOOT PRICE OF 131,000 DOLLARS. MOUNT NICHOLSON Phase 1 was completed in 2015, while Phases 2 and 3 were completed in 2016 and are nearly 10 years old.
According to a report, there were 12,500 ultra-high-net-worth individuals in Hong Kong with a wealth of US$30 million or more at the end of last year, ranking second in the world after New York. China News Agency
In third place is the strata unit at No. 8 Peak Road, with an area of about 5,275 square feet, which was transacted for about $550 million, with a transaction price of $104,000 per square foot. 8 Peak Road was occupied in 2004 and has a history of 20 years. Formerly known as Xinyi Residence, the building was developed by Taiwan developer Bailida, and after its completion in 2004, Capital Strategy Real Estate (497) partnered with Fengtai Real Estate Investment to purchase 70% of the property in 2015 and renovate it again.
The transaction price of Xu Jiayin silver main market ranked sixth
As for Evergrande Xu Jiayin's Peak Buli Jing Mansion Silver Main Plate, it ranked sixth.
The 5,171-square-foot main market, which was controlled by Hui Jiayin through an offshore company, was leased for many years and mortgaged to China Construction Bank (Asia) in October 2021 as a grace date for the US$260 million bond that was overdue and unpaid at that time. In November 2023, the project was taken over by China Construction Bank (Asia) and was traded for about $448 million in the first half of this year, about half of the market value of $880 million a year ago.
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Reporter: Zheng Shanshan, Wang Dandan
Editor: Tong Qu
Editor: Jianzong
Proofreader: Zhuo Ling
Executive Producer: Jia Min