Hong Kong homebuyer optimism rises

The number of transactions in 35 major residential projects jumped to an eight-month high in the two weeks ended Jan 8, according to Midland Realty. — Bloomberg

HONG KONG: Hong Kong’s property market is seeing more deals as buyers bet the border reopening with mainland China will help channel more capital into the city and stoke a recovery.

The number of transactions in 35 major residential projects jumped to an eight-month high in the two weeks ended Jan 8, according to Midland Realty.

That is an encouraging sign for a market where combined new and used home sales slumped last year to the lowest level since at least 1996, according to data tracked by Centaline Property Agency.

The border between the mainland and Hong Kong started to gradually reopen Jan 8 after being effectively sealed since early 2020, as both governments pursued a zero-Covid policy by shutting themselves to the outside world for much of the pandemic.

“The confirmation of the first phase of border opening can facilitate the exchange between the mainland and Hong Kong, bringing Hong Kong the long-absent Chinese capital,” said Sammy Po, chief executive officer of Midland’s home division. “It will stimulate the asset price to rise.”

Po’s company estimates used home transaction registrations will reach a seven-month high in January.

A family office with Chinese background snapped up more than 10 apartments for about HK$100mil (RM56mil) in recent weeks, according to Edmund Pang, a senior district sales director at Midland whose team brokered the deals.

The buyer had been on the hunt for nearly five months and news of the border reopening helped speed up the decision to purchase, said Pang. Talent flow and economic activities will pick up between the two places. — Bloomberg