In January, the property market in Hong Kong experienced a noticeable slowdown, attributed to the Chinese New Year holiday. The Land Registry recorded 4,938 sale and purchase agreements for all types of building units, marking a 10.4% decrease from December 2024 but a 12.2% increase compared to the same period last year. Residential units saw a similar trend, with 3,626 agreements logged, down 11.6% month-on-month but up 4.3% year-on-year. Despite this dip, industry experts anticipate an uptick in activity as developers prepare to launch new projects post-holiday.
Market Dynamics Affected by Traditional Celebrations
During the festive season, the real estate sector faced a temporary lull. In the heart of winter, when families gather to celebrate the Lunar New Year, fewer transactions were expected. Eddie Kwok, Executive Director of Valuation & Advisory Services at CBRE Hong Kong, noted that the holiday contributed significantly to the softer transaction volume. Specifically, residential agreements fell by 11.6% to 3,626 units. However, Kwok remains optimistic about future prospects, observing that developers are gearing up to introduce more projects following the holiday. He anticipates increased activity in March, especially after the government's budget announcement.
The total value of agreements also reflected this slowdown, dropping 14.2% month-on-month to HKD 36.7 billion, yet still showing a 9.1% growth year-on-year. For residential properties alone, the total consideration amounted to HKD 26.7 billion, decreasing 17.9% month-on-month and 3.8% year-on-year. Additionally, the government recorded 334,421 searches during this period, indicating ongoing interest despite the reduced transaction volume.
From a journalistic perspective, this data highlights the cyclical nature of the property market, particularly its sensitivity to cultural and seasonal factors. The temporary decline should not be viewed as a long-term trend but rather as a natural fluctuation influenced by traditional celebrations. As the market regains momentum post-holiday, it will be interesting to observe how new projects and policy changes shape the future landscape of Hong Kong's real estate sector.