Business
Mainland Chinese Buyers Drive Hong Kong Property Market Surge Following Cooling Measures Withdrawal
Property sales in Hong Kong have been bolstered by purchasers from Mainland China following the removal of restrictive measures. During the initial eight months of the year, these buyers were responsible for 7,575 primary and secondary property dealings.
Centaline Property Agency reported on Wednesday that mainland purchasers were responsible for 7,575 initial and subsequent real estate transactions in the first eight months of the year. This figure represents a 70 per cent increase from the previous year, and the total value of these transactions also surged by 43 per cent, reaching a new record of HK$84.89 billion (US$10.9 billion). Therefore, both the number of transactions and the total transaction value achieved new record levels.
After all steps taken to stabilize the domestic property market were removed, buyers from the mainland have made up over 20% of all purchases consistently for half a year. In August, these mainland purchasers were responsible for nearly 23% of all transactions. In numerical terms, this means 745 out of 3,271 property deals in August were made by buyers from the mainland, showing an increase from 723 in July.
Towards the end of February, the government eliminated the Buyer's Stamp Duty, which was aimed at non-permanent residents, and a New Residential Stamp Duty for those buying a second home. Additionally, homeowners were provided a break from the Special Stamp Duty if they decided to sell within a two-year period.
Louis Chan Wing-kit, the CEO of Centaline Property Agency, anticipates an increased influx of investment from mainland China into Hong Kong, particularly targeting the real estate sector.
Chan indicated that reduced interest rates and Beijing's initiatives to bolster the economy are positively impacting the market. He also noted that recently, commercial banks have shown an increasingly forward-thinking approach to mortgage lending. Centaline revealed that a significant number of professionals and other purchasers from the mainland are being attracted to the city by reduced prices from property developers.
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