It was a quiet end to 2015 in Hong Kong, with a relatively stable rental and slow secondary market. However, in the absence of oversupply of lucrative properties, the prospects of a huge decline in both residential rentals and sales are limited.
Moving into 2016, we will continue to see a steady and stable residential rental market, with the exception of some areas – for example, in Kowloon and New Territories where a rental decline is possible.
Local moves account for more rentals than new arrivals into Hong Kong. Budgets of HK$50,000 to $80,000 per month continue to be active and tenants are more likely to be individuals rather than corporate.
The government’s property cooling measures, a potential US interest-rate increase, and more housing supply in the pipeline are the key factors that have prompted potential buyers to adopt a wait-and-see approach, resulting in subdued sales transactions in Q4 of 2015. Analysts expect sales volumes will pick up in Q2 of 2016 as more flat owners will be willing to reduce prices in light of slow market performance.
A number of buyers have also shifted to the primary market, where property developers continue to attract buyers by offering competitive prices and preferential incentive packages. The demand for ultra-luxury residential real estate still remains strong, and foreign interest is not limited to mainlanders.
Q2 of 2016 will see the tide change to a buyer’s market and one just has to be in the right place at the right time in order to seize the opportunity.
District: Mid-Levels West
Rental price: HK$76K
Size: 1,682 square feet
Bedroom: 3 (1 ensuite)
This nicely refurbished apartment is well located with a balcony and open views. The efficient layout includes three good-sized bedrooms, an open-plan kitchen and very well maintained bathrooms.
District : Repulse Bay
Sale price: $91M
Size: 2,626 square feet
Bedrooms: 4 (2)
With open views of Tai Tam Reservoir and surrounding mountain greenery, this apartment’s superior location puts you right on nature’s doorstep. There are exclusive communal and clubhouse facilities on site, too, and a resident shuttle bus that commutes into town.
Rental price: $70K
Size: 1,461 square feet
Bedrooms: 3 (1)
This beach apartment has been renovated in a minimalist and quality style. Aside from the welcome sea view, it boasts plenty of natural light, and a modern kitchen and bathrooms. The exclusive residential complex has a swimming pool and communal garden.
District: Tai Po
Sale price: $13.9M
Size: 2,100 square feet
Bedrooms: 4 (2)
Make this exquisite village house in Tai Po your own dream home or a second home for weekend escapes. Beautifully renovated with loads of outdoor space, the house provides easy driving access to the CBD.
District: Kowloon Tong
Rental price: $220K
Size: 4,000 square feet
Bedrooms: 5 (4)
This newly renovated British-style house has freshly painted walls and polished light-brown floors. The open kitchen is spacious and fully equipped with essential appliances, while a high-walled terrace off the ground floor living room offers privacy for outdoor dining and sitting.
For more information on any of these properties contact Hong Kong Sotheby’s International Realty / 3108 2108 / Suite 2001, Three Pacific Place.
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