Without a crystal ball, one must look at both the global and local economic drivers and at Colliers we believe that they continue to point in one direction – up. If you would like to know more about residential valuation, financing, or see what could be for you and your real estate needs, don’t hesitate to contact Angus Luk of the Valuation & Advisory Services team.
|Jan-Apr 2021 vs Jan-Apr 2020 by purchase price|
|Purchase price (HK$)||2021 transactions||2020 transactions||% Change|
|>10M to 50M||6,380||2,630||143%|
|>50M to 200M||205||157||30%|
Between January and April, sales in the “Under HK$10m” category increased by 50% YOY, benefitting from the Mortgage Insurance Programme announced by Chief Executive Carrie Lam in the 2019 Policy Address, which allows first-time home buyers to receive a mortgage loan of up to 90% of the property’s value (a significant change from the previous 50% limit).
The “HK$10M to HK$50m” properties enjoyed even higher growth rates likely due to increased demand for larger living spaces as more people work from home and their children learn from home due to COVID-19.
Though the number of transactions is small, the January and April 2021 growth is impressive in the “Over HK$200m” band. The reasons are as follows:
- Investors’ confidence returned due to less political instability and the ability to deal with new waves of COVID-19.
- Developers launched more ultra-luxury homes in this period, many of which were purchased by buyers from the PRC where the economy has rebounded quickly.
- Buyers believe the “Fung shui” is better for wealth and good health in traditional luxury districts.
Without a crystal ball, one must look at both the global and local economic drivers and at Colliers we believe that they continue to point in one direction – up!