Hong Kong’s real estate market will likely see strong growth following the Lunar New Year, despite its slowdown ahead of the festive season, said analysts.
The local market will also receive a boost from the recent mainland property cooling measures.
Sales at its 10 benchmark residential developments fell to 56 last week, from 66 in the previous week.
“Many people are busy preparing for the Lunar New Year and many are on holiday overseas,” said Buggle Lau Ka-fai, Chief Analyst at Midland Realty.
Sales will recover after the holiday, as sentiment improves and more new residential projects are likely to go on the market.
Property developers have also been promoting Hong Kong projects on the mainland.
Sun Hung Kai Properties will begin selling homes in UniQ in Shau Kei Wan, Imperial Cullinan in West Kowloon and Park Nara in Yuen Long, while Cheung Kong will sell its new development, Uptown, in Yuen Long.
“Thanks to China’s cooling measures, mainlanders with money may consider Hong Kong, because our policy does not limit their purchases,” said Patrick Chow Moon-kit, Head of Research at Ricacorp.
“And with the yuan appreciating, there is a big incentive for them to park their money in the Hong Kong property market.”
After the Lunar New Year, home prices and the number of homes sold will increase 10 to 20 percent from the previous year, due to the expected increase in mainland buyers, said Mr. Chow.