Midland sees Hong Kong home prices rising 15%
SCMP · 1 SOURCESabout 3 hours ago1 MIN
Summary
Midland Realty said on Thursday that Hong Kong home prices were on track to end the year 15 per cent higher than a year earlier. Even with that rebound, prices would still be 16 per cent below their 2021 peak, according to the agency.
Key Points
- At a Thursday press conference, Midland executives said banks in Hong Kong were unlikely to automatically match any US Federal Reserve rate increase this year.
- Dave Ma Tai-yeung, CEO of Midland (Residential), said buyers were returning as the market absorbed geopolitical and external economic uncertainties.
- Midland data showed first-hand home transactions rebounded to 1,100 units in August after falling for two straight months to just over 800 units in June and July.
- Ma forecast fourth-quarter first-hand transactions would rise 50 per cent quarter on quarter to 5,100 units, while second-hand deals would increase 10 per cent to 12,700.
- Research analyst Benny Sham said competitively priced new launches could divert buyers from the secondary market, but strong primary sales could still support second-hand prices and transactions.
Why It Matters
If Midland's forecast holds, the recovery would give developers more confidence to speed up launches while offering pricing that keeps demand active across both the primary and secondary markets. Record-high rents, cited by the agency as leaving room for prices to catch up, could also influence would-be tenants to reconsider buying.