Hong Kong’s latest home price index shows a strengthening residential market, with robust absorption rates in the primary sector, according to Eddie Kwok, Executive Director of Valuation & Advisory Services at CBRE Hong Kong.
Developers have regained pricing power as new project launches see price increases, while secondary home prices are also climbing amid improving buyer confidence. The market is supported by a steady inflow of capital and ample liquidity.
Kwok added, the first-hand residential market is exhibiting robust absorption rates. Sustained demand has shifted pricing power back to developers, as seen in recent price increases in new project launches. Strong momentum in the primary market is driving a wider recovery across the sector. Secondary home prices are also increasing as growing buyer confidence spreads across the residential market.
Kwok also noted that despite a backdrop of macroeconomic volatility and ongoing geopolitical risks, most of these factors are already priced in, with market sentiment expected to remain positive. Residential property prices are projected to rise by 8% to 10% this year.