The residential market exhibited a decline in activity, following the short-term robust buying sentiment observed in April. A total of 5,546 transactions were recorded across the primary and secondary markets in May, representing a 35% decrease from the previous month.
New home sales declined by 47% m-o-m to 1,934 units in May, but still represent the second-highest figure in 34 months, since July 2021. Meanwhile, the secondary market saw a 27% monthly decrease in the number of registered deals, dropping to 3,612 cases. This can be attributed to the fading effect of the removal of ‘spicy measures’, which has resulted in buyers returning to a more rational approach.
At the same time, Hong Kong’s private home prices lost steam again after a second consecutive month of gains. In fact, home prices dropped by 1.2% to 305.9 in May and have declined by 1.7% year-to-date.
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