Hong Kong property market sees price increases as confidence returns, sales surge

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Chinachem Group, the developer of Echo House, has raised the price of the second batch of 50 flats by about 4 per cent amid a surge in interest

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An artist’s impression of the Echo House residential project in Cheung Sha Wan. Photo: Handout

Cheryl Arcibal

Published: 9:30am, 22 Oct 2024Updated: 10:02am, 22 Oct 2024

Hong Kong developers are gradually raising prices amid increasing confidence in the outlook of the city’s housing market following a slew of measures that have caused buyers to step into the market.

Chinachem Group on Monday raised the price slightly of the second batch of flats at the 198-unit Echo House residential project in Cheung Sha Wan after 5,500 buyers registered for 100 units going on sale.

The batch of 50 units will have an average price of HK$15,440 (US$1,987) per square foot after discounts, 3.7 per cent higher than the HK$14,888 in the first list. Echo House is a joint development with the Urban Renewal Authority.

“Supported by multiple favourable factors, including interest rate cuts, a recovering stock market and policy measures benefiting the real estate market outlined in the policy address, market sentiment has noticeably improved,” said Derek Chan, head of research at Ricacorp Properties.

“The transaction volume of new properties has significantly increased, showing robust performance with buyers actively entering the market. Developers are in a position to implement slight price increases.”

The price of the first 50 units of Echo House released last week was the lowest in the district since 2016, when Henderson Land launched its Park One project at HK$13,000 per square foot, according to property agents.