news

Hong Kong luxury residential sector leads property recovery cycle

PETALING JAYA: Hong Kong’s luxury residential sector led the property recovery cycle in the first 11 months this year, with the price growth of 40%, executive director of residential sales of Colliers International Hong Kong Ricky Poon said.

The total value and number of transactions with prices over HK$10 million (RM4.4 million) increased 8.8% year-on-year (y-o-y) to HK$38,837 million and 44% y-o-y to 1,231 cases respectively, during the period from January to November 2009, he said.

“The luxury residential market has seen active sales in 2009, with record-breaking prices achieved for new projects. Prospective purchasers were mainly buyers coming from China, which took up 40% of the total, followed evenly by upgraders, expatriates, industrialists and investors.

“With limited new supply, low interest rate and capital inflow projected in 2010, luxury residential prices are expected to see a rise of 10% in the next 12 months,” he added.

Colliers International, meanwhile, said the recovery of the residential leasing market lagged behind the sales market, with rentals yet to return to pre-crisis levels. The leasing sector experienced a year-to-date fall of 5%.

However, tenants from the finance industries are returning as the economy sees improvement. The luxury residential rentals are projected to pick up steadily by 5% and the residential yield will be about 2.5% to 2.8% in the next 12 months.
Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE