Hong Kong
The demand for residential
property is generated both
domestically and from overseas
The turmoil in the global financial markets has already
led to a dramatic stock market downturn and a severe
tightening of liquidity in both the global and Hong
Kong banking systems. The level of wealth destruction
in the capital market has led to a severe dampening of
investment sentiment in the property market.
The luxury and super luxury sales markets in Hong
Kong turned down in the second half of 2008 after
a resilient first half. While investors have become
increasingly cautious, cash-rich landlords remain
reluctant to sell their assets at discounted prices. This
has resulted in a subdued investment market over the
past few months.
Prices of luxury properties peaked in Q2/2008, after quarter and hit the luxury residential sector in terms Hong Kong’s growing
increasing by 10 per cent over the first six months of of prices and volumes. As a global recession has
population of HNWIs
the year. Average prices of townhouses and luxury increasingly become a matter of timing rather than
stimulates demand for
residential property
apartments on Hong Kong Island dropped by 5 and 6 likelihood, demand for properties for occupation as well
per cent respectively over Q3/2008. Prices of selected as investment will continue to shrink, and further price
properties returned to levels of six to nine months ago, declines should deter purchasers. Latest statistics reveal
but were still well above 1997 levels. luxury prices and rents may have plummeted by another
The Hong Kong luxury residential leasing market also 20 and 10 per cent respectively over Q4/2008.
shows signs of softening. Luxury residential rents, after Limited supply has been a phenomenon and has acted
seeing a 10 per cent growth over the first six months, as a support to price levels in the past. Nevertheless,
fell marginally by 1 per cent from their peak in the with property price adjustment inevitable, the tight
preceding quarter after four years of growth. supply situation could best act as a moderator in this
Market sentiment changed quickly in the third otherwise rapidly falling market. n
Property Focus
Hong Kong’s finest
residential locations
Contact:
Karen Cheung
+852 2842 4400
kwpcheung@savills.com.hk
Regalia Bay, Hong Kong Repulse Bay, Hong Kong
Contact: Situated on the south-western part of Stanley Peninsula This modern property offers sea views, a spacious master
Savills International with unobstructed sea views over the majestic Stanley ensuite, 2 additional bedrooms plus full access to the
+44 (0) 20 7016 3740 Bay, 4 en-suite bedrooms and gardens. Hong Kong Golf Club & Hong Kong Country Club.
abroad@savills.com Price: From HK$98 million Price: From HK$80 million
savills global residential review 29
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