2025-04-04 28Hse Editor
The sluggish secondary property market has seen a rare boost in activity. The latest Eva Property Price Index stands at 106.52 points, marking a 0.27% weekly increase, indicating a steady recovery in market demand. With the primary market experiencing a temporary "ceasefire," many prospective buyers who failed to secure new properties have turned to the secondary market, leading to a significant uptick in transactions.
According to real estate agency statistics, the top ten benchmark housing estates recorded nearly double-digit transaction volumes over the past weekend, reflecting a gradual release of purchasing power and increased buyer interest. Additionally, the stamp duty concessions announced in the financial budget have improved market sentiment, reducing uncertainty and boosting buyer confidence. Agency data also shows that about 480 viewing appointments were recorded across 15 benchmark housing estates, a notable increase from previous figures, indicating a recovery in market confidence as buyers actively seek suitable units.
However, challenges remain. Both Midland Realty and major local banks have maintained interest rates, keeping borrowing costs high. As a result, buyers remain cautious, and property prices are still in a bottoming-out phase in the short term. Meanwhile, the competitive pricing strategies in the primary market are expected to continue influencing secondary market prices. Some property owners may need to further adjust their asking prices to attract buyers, keeping short-term property prices under downward pressure.
Overall, while the secondary market has shown signs of recovery and increased confidence, external economic factors and competition from new property launches continue to introduce uncertainty. The future market trend will depend on interest rate movements, new property pricing strategies, and government policies aimed at stabilizing market sentiment.
Strong Rebound in New Territories West Property Price Index: Up 1.64% Weekly, Returning to Pre-Lunar New Year Levels
The financial budget released in late February announced a relaxation of the HK$100 stamp duty threshold, providing an immediate stimulus to the market, particularly boosting transactions in the New Territories West’s lower-priced housing segment. Thanks to this policy benefit, the latest New Territories West Property Price Index has risen to 112.51 points, marking a 1.64% weekly increase and successfully returning to levels seen before the Lunar New Year, reflecting a renewed buyer confidence in the market.
Industry analysts point out that buyers of lower-priced homes tend to be more sensitive to transaction costs. The stamp duty concession has effectively lowered the entry barrier for homeownership, encouraging many prospective buyers to speed up their purchasing decisions, thereby significantly boosting secondary market transactions in the New Territories West. Additionally, as competition in the primary market has eased recently, some unsuccessful buyers have shifted to the secondary market in search of suitable properties, further driving up transaction volumes in the area.
Eva Rental Index Remains Range-Bound, Down 0.03% Weekly
The rental market is currently in its traditional off-season, with overall leasing demand slowing down. The latest Yifa Rental Index stands at 114.18 points, registering a slight 0.03% weekly decline. Although the drop is minimal, it reflects a short-term adjustment in rental demand.
Notably, New Territories West experienced the most significant decline, with the latest rental index at 130.43 points, down 1.09% weekly, marking the largest adjustment among all districts. Analysts attribute this rental decline to the recent improvement in the property market sentiment. With the relaxation of the HK$100 stamp duty threshold, some prospective tenants have opted to buy instead of renting, reducing rental demand in the area.
Furthermore, growing market expectations of future interest rate cuts have led more renters to consider homeownership. If the trend of "mortgage payments being cheaper than rent" emerges, it could further destabilize the rental market and contribute to downward pressure on rental prices.
Looking ahead, if interest rate cuts materialize and mortgage costs decrease, more tenants may transition into homeownership, potentially exerting greater pressure on the rental market. However, rental trends will also be influenced by new property supply, the broader economic environment, and inflows of foreign residents. In the short term, the market is expected to remain in a wait-and-see mode, with rental fluctuations likely to remain moderate.
This week's index reflects market conditions from March 21 to March 27, 2025.
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