Henderson Land Maintains 5-10% Full-Year Forecast Despite July Dip, Eyes 1,700 Units Sold
SingTao · 1 SOURCESabout 2 hours ago5 MIN
Summary
Henderson Land's Director Kenneth Hon Ka-fai (韓家輝) has reaffirmed confidence in Hong Kong's property market, maintaining the company's full-year forecast of 5-10% price growth despite a marginal pullback in July. The Rating and Valuation Department's latest data shows the July price index dipped 0.49%, ending a 13-month upward streak. However, Hon highlighted that new home transactions in the first seven months reached over 12,300 units worth HK$155.7 billion, up more than 9% and over 50% year-on-year respectively, describing the market as experiencing "price-volume co-expansion." Looking ahead, Hon anticipates stable Hong Kong interest rates as local banks typically lag US Federal Reserve adjustments.
Key Points
- The Rating and Valuation Department's July 2026 property price index fell 0.49% month-on-month, ending a 13-month consecutive increase trend .
- New home transactions in the first seven months of 2026 exceeded 12,300 units valued at HK$155.7 billion, representing year-on-year growth of over 9% in volume and over 50% in value .
- Henderson Land's Sales Division Two has sold over 1,700 units generating approximately HK$21.7 billion in transaction value year-to-date .
- Unsold inventory has declined to approximately 17,000 units from a peak of around 23,000, falling below one year's worth of new home transactions .
- The US Federal Reserve has held interest rates unchanged for five consecutive meetings, with Hong Kong banks maintaining their prime rates .
Why It Matters
The resilient transaction volume despite a brief monthly price correction suggests underlying demand remains robust, particularly as pent-up demand from previous market uncertainties gradually releases. The anticipated influx of talent migrants and their rental demand is also expected to support both the investment and residential market segments, providing a multifaceted boost to Hong Kong's property sector throughout the remainder of 2026 .
The resilient transaction volume despite a brief monthly price correction suggests underlying demand remains robust, particularly as pent-up demand from previous market uncertainties gradually releases. The anticipated influx of talent migrants and their rental demand is also expected to support both the investment and residential market segments, providing a multifaceted boost to Hong Kong's property sector throughout the remainder of 2026 .