Research predicts further rises ahead for luxury Hong Kong property
Knight Frank, JLL and Cushman & Wakefield estimate luxury home prices will increase 8 to 10 per cent this year
Hong Kong’s luxury property prices will continue to rise in 2018, led by demand from rich mainland buyers and cash-rich Hong Kong investors, according to three research houses.
Knight Frank, JLL and Cushman & Wakefield estimate that luxury home prices will increase 8 to 10 per cent this year, continuing the longest period of price rises in the luxury residential sector.
Knight Frank, which predicts that luxury home price will rise by 8 per cent, says Hong Kong’s residential prices have risen for the past 19 months, up 11.6 per cent for mass units and 7.3 per cent for luxury.
Residential sales are expected to reach about 60,000 in 2017 (when last year’s figures are released) and the volume could reach 60,000 to 63,000 in 2018.
“With mainland capital continuing to pour into Hong Kong’s luxury market, where supply will remain limited, luxury home prices are set to increase 8 per cent in 2018,” the Knight Frank report said.
A Cushman & Wakefield report forecasts a 10 per cent growth in Hong Kong home prices across the board in the first half of this year, supported by Hong Kong’s strong economic fundamentals, record-low unemployment rate, demand exceeding supply and a booming stock market.
Hong Kong’s property market is considered the most expensive market in the world, especially the luxury property sector.
It remained the least affordable city for the seventh consecutive year in 2016, with the ratio of median home price to median annual household income climbing to 18.1.