The effect of customs clearance is not obvious for the time being, the local property market lacks the impact of mainland customers, coupled with the influences of immigration and property market spicy measures, the proportion of luxury residential transactions (including first and second-hand) priced above $20 million in recent years, from nearly 8% before the epidemic to 4% last year.
However, Centaline Asia Pacific Vice Chairman and Chief Executive Officer of the residential department, Mr. Chan Wing-kit, said that under the temporary stimulation of the inflationary effect, the ratio of luxury residential transactions this year has slightly rebounded to 5%, still not back to the pre-epidemic level, the government should reduce the spicy as soon as possible, including the reinstatement of the long-used 70% mortgage ceiling before the spicy, in order to attract more "talent" to Hong Kong and accelerate the recovery of the Hong Kong economy. He said directly that the current property market is dominated by rigid demand, buyers are mostly below $10 million property as the goal of the market.
After the customs clearance of various industries have resumed, but not luxury residential, this year's property prices underperformed the general market. The Centaline City Leading Index CCL has risen 6.7% this year, and the prices of small and medium-sized units have also risen 7.7%, but the large units reflecting the luxury residential market have only risen 2.2%.
At present, residential properties over $20 million, whether for owner-occupied or rental, the maximum mortgage percentage of 50%, that is, at least $10 million down payment. And non-local buyers in Hong Kong to buy a property, and pay up to 30% more spicy tax, involving spicy tax 6 million. Such a "hot move" in the past has caused many overseas buyers to deter, especially in recent years, a new group of "professionals" to Hong Kong, even after becoming a permanent resident of Hong Kong can apply for tax rebates, but the spicy tax becomes a difficult hurdle, some talents or first choose to rent a building.
Because of the epidemic after the economy was hit, most of the mainland customers to Hong Kong spending power is weaker, come to buy a "luxury" degree is not what it used to be, luxury customers are almost extinct, the proportion of luxury properties priced at more than 20 million dollars is also traceable. Chan Wing-kit said, last year, Hong Kong recorded 42,063 first and second-hand sales and purchases registered, but among them, the price of $ 20 million or more luxury residential transactions fell through 2,000 cases, only 1,783 cases, a nine-year low in 2013 after recording 1,430 cases, accounting for a low of 4.2%, a new eight-year low. That is, for every 23 buyers in Hong Kong last year, there was only one luxury home buyer on average.
Looking back to 2018, when there was no epidemic or migration, among the 54,240 first and second-hand sales in Hong Kong, there were 4,189 transactions of luxury properties priced above $20 million, accounting for 7.7%, a record high, with an average of one luxury home buyer for every 13 buyers. And then in 2019 and 2020, the volume of luxury residential transactions fell back to 2,944 and 2,405 cases, the proportion fell to 5.2% and 4.3%. 2021 property prices hit a record high (CCL rose through 191 points), the same year, the volume of luxury residential transactions priced above $ 20 million, a record to 4,366 cases, accounting for 6.3% of the overall.
The first five months of this year, the primary and secondary markets temporarily recorded 21,033 transactions, and how many luxury residential customers, the answer is 1,118 cases, accounting for 5.3%.
As for the years with the most transactions above $20 million in the primary market, 2017 and 2018, each recorded 2,420 and 2,329 cases, accounting for 13% and 15% of the total primary transactions in the same period. However, the number of transactions fell to a nine-year low of 616 last year. With the resumption of customs clearance between Hong Kong and China, a number of luxury residential properties are on sale, the first five months of this year recorded 551 first-hand residential transactions, up more than 80% compared to the same period last year, of which the most number of 99 cases were recorded in Ho Man Tin Station Yu Yi, followed by West Kowloon Harbour View and Kai Tak River King, recording 94 and 79 cases respectively.
