Since the government’s introduction of the Special Stamp Duty in November last year, Hong Kong’s property market seems to have enjoyed a period of relative calm. However, luxury properties remain the favourite among investors while some may hold back on selling their properties amid the current high prices, leading to insufficient supply in the market.
Since the government’s introduction of the Special Stamp Duty in November last year, Hong Kong’s property market seems to have enjoyed a period of relative calm. However, luxury properties remain the favourite among investors while some may hold back on selling their properties amid the current high prices, leading to insufficient supply in the market.
Jeff Law, Head of Kowloon Residential, commented that central Kowloon is a well-established luxury residential district with many attractions, including low density, plenty of open space, a comprehensive transport network and elite schools, while the extension of the railway network to Ho Man Tin will further strengthen the value of the properties in the area. Earlier this year China Overseas Group bought 62 Begonia Road in Kowloon Tong for HK$579 million and even though the price is on a par with market expectations, the enthusiasm from developers represents a robust and positive outlook for Hong Kong’s property market which will indirectly benefit the second-hand luxury market.
On a separate note, according to the transaction figures of properties priced at HK$20 million or above from January to May (see chart below) by EPRC and Savills Research and Consultancy, the number of transactions in West Kowloon soared to over 80, with the traditional luxury districts of Pokulam and Mid-Levels following in second and third place with over 60 transactions in each district. Peter Yuen, Deputy Managing Director, China and Macau, said, ‘more transactions are being seen in the so-called new luxury districts, the most active being Kowloon Station. Currently, over 30% of residents in the Kowloon Station area are mainlanders, who are drawn here by the convenient transportation links and wealth of shopping facilities on offer. In addition, Western Kowloon is set to become the new arts and cultural centre in the near future, further raising the potential of western Kowloon property market.”