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Hong Kong property deals hit 7-month high, but December slowdown looms

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Property transactions in Hong Kong rose to a seven-month high in November, though they are likely cool this month as buyers turn cautious amid rising geopolitical tensions and a potential slowdown in the pace of interest rate cuts, according to market observers.

A total of 7,689 deals for new and lived-in homes, offices, shops, industrial units and car parking spaces were completed last month, the highest since 9,880 in April, according to data from the Land Registry on Tuesday.

The tally was 31 per cent higher than October’s 5,857 and more than double the 3,532 a year earlier.

The value of the deals rose by more than 50 per cent to HK$64.1 billion (US$8.2 billion) compared with October and was 161 per cent higher than a year earlier, the data showed.

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Hong Kong housing minister reveals plan to regulate subdivided flats, boost home ownership

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Property transactions in November rose for a third month in a row, but they are likely to fall by nearly 40 per cent to as low as 4,800 in December because of a slowdown in home sales, according to Derek Chan, head of research at Ricacorp Properties.

Optimism returned to the property market following a half-point reduction in interest rates in September, which was further boosted by the easing of mortgage rates for homebuyers and investors in October.

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