According to a forecast by Credit Suisse, property prices in Hong Kong could potentially fall by 17% by 2025, which would equate to a 34% drop from the peak levels seen in 2019. These predictions have added to the market's concerns about future trends.
The government has also implemented a series of measures to control the real estate market, including increasing stamp duties on properties, restrictions on land sales, and promoting public housing, among other initiatives.
However, these measures seem to have not yet resolved the current issues. As the market heads towards new lows, many developers have started to offer discounts to stimulate sales and are striving to provide better after-sales services.
However, in the Hong Kong real estate market, developers of new projects need to adhere to strict regulations and procedures to obtain approvals from the relevant authorities.
As a result, there is currently no news on some new projects scheduled for launch in October, perhaps pending the upcoming Policy Address. Nevertheless, some developers have identified potential opportunities and have begun to rush the release of sales brochures and promotional materials.
One notable redevelopment project is the Sum Tien development under Emperor International, located at 80 Tai Wong Street East, Hong Kong. This single-block property offers 110 units, ranging from one to three-bedroom layouts, with a focus on one-bedroom units.
The pre-sale period is expected to conclude by the end of March 2025, spanning 18 months. The developer has indicated that the project will commence sales within this month, with at least 50 units in the initial round, with pricing referencing similar properties in the area.
In recent times, the transaction volume in the Hong Kong secondary property market has been relatively low, and sales in some traditionally popular estates have also seen a decline. However, some buyers may be considering the impending property market-related policies to be announced by the government and are entering the market ahead of time to make property purchases. Some properties have already seen a downward trend in prices, for example, high-floor units at the Amoy Gardens in Ngau Tau Kok have had to reduce prices to facilitate sales.
