Hong Kong’s property market to build on gains in the Year of the Horse, agents say

Hong Kong’s residential property market made gradual and steady gains in the Year of the Snake, with the momentum set to continue in the Year of the Horse, according to the city’s largest real estate agencies.“The Year of the Snake marked the end of three years of decline and a strong rebound fuelled by policy easing and wealth effect [from the Hong Kong stock market’s gain],” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties.“The Year of the Horse will build on the momentum,” he said. “With lower rates and potential government budget support, the market will move from recovery to expansion.”He said investors could expect a more balanced volume growth, firmer prices across the mass, mid‑market and luxury segments and a healthier secondary sector.Midland Realty’s proprietary property gauge showed that home prices in the city rose 7.3 per cent in the Year of the Snake. Photo: Eugene LeeAs of February 12, property transactions in the city – spanning new and lived-in homes, offices, shops, industrial units and car parking spaces – totalled 87,506 valued at about HK$678 billion (US$86.8 billion), according to data from the Land Registry.Ricacorp, meanwhile, estimated 88,200 transactions valued at HK$684 billion in the just-concluded Year of the Snake, an increase of 31 per cent and 27 per cent, respectively, compared with the preceding Year of the Dragon.