Mainland Chinese buyers help fuel Hong Kong property sales after cooling measures scrapped

Buyers from the mainland accounted for 7,575 primary and secondary property transactions in the first eight months of the year, an increase of 70 per cent from a year earlier, while the value of those deals rose 43 per cent to HK$84.89 billion (US$10.9 billion), Centaline Property Agency said on Wednesday. Both transactions and total deal value hit fresh record highs.

Following the withdrawal of all measures aimed at cooling the local real estate market, mainland buyers have accounted for more than 20 per cent of all transactions for six months in a row. In August, mainland buyers accounted for 22.8 per cent of all deals. In August, 745 of the 3,271 property transactions were registered to mainland buyers, up from 723 in July.

In late February, the government withdrew the Buyer’s Stamp Duty that targeted non-permanent residents and a New Residential Stamp Duty for second-time purchasers. Homeowners were also given a reprieve from paying a Special Stamp Duty if they sold within two years.

“It is expected that more capital from the mainland will be attracted to Hong Kong, especially seeking treasures in the property market,” said Louis Chan Wing-kit, CEO of Centaline Property Agency.

Chan said the market is benefiting from lower interest rates and Beijing’s measures to support the overall economy. He added that commercial banks have lately had a more proactive outlook on mortgage lending. Centaline said a large number of professionals and other buyers from the mainland have been lured to the city with discounted prices from developers.