Mainland Chinese buyers thronging to Hong Kong property sales in search of returns after removal of curbs, industry insiders say

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Mainland buyers see Hong Kong properties as offering better capital appreciation prospects and diversification compared to mainland China, Habitat Property’s Victoria Allan says

Surge in transactions in the short term is exciting, but ‘I would stay cautious about a sustainable recovery’, CGS International Securities’ Raymond Cheng says

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A property agent’s office in Hong Kong’s Fortress Hill. The number of transactions is expected to surge by 80 per cent to 5,750 deals this month, Ricacorp Properties says. Photo: Eugene Lee

Yulu AoandSalina Li

Published: 7:30am, 5 Mar 2024Updated: 6:31pm, 5 Mar 2024

The removal of all property sector cooling curbs in Hong Kong has sparked immediate interest among mainland Chinese buyers, who still perceive real estate in the city as a lucrative investment option that also offers capital appreciation and diversified offshore assets, industry insiders said.

There has been a sudden rebound in the volume of home sales in general, with a total of more than 580 property transactions in the primary market between Sunday and the announcement of curb relaxations last Wednesday, according to agents.

“We observed shortly after the budget more than 500 online enquiries from mainland buyers, who showed an interest in Hong Kong property,” said Andy Lee, the China CEO of Centaline Property Agency. A couple of enquiries were also made about new investment opportunities, he added.

In last week’s Hong Kong budget, Financial Secretary Paul Chan Mo-po scrapped decade-old property market curbs in an effort to revive the city’s struggling real estate sector. For instance, home prices declined for a ninth consecutive month in February, resulting in the official home price index dropping to a seven-year low.

“[Mainland buyers] view Hong Kong properties as a favourable investment choice, offering better capital appreciation prospects and diversification compared to mainland China,” said Victoria Allan, the founder of Habitat Property.

For instance, shortly after the new policy was announced, a mainland buyer swiftly bought a 502 sq ft three-bedroom unit in Sheung Shui for HK$4.85 million (US$619,857), according to property agent Ricacorp Properties. The buyer had previously hesitated but made a quick decision following the removal of the property cooling curbs.