Analysts note that, according to data from the Hong Kong Land Registry compiled by a research center, overall property registrations in Hong Kong for the first 25 days of June reached 7,973 units. This figure encompasses primary private residential units, secondary residential units, primary public housing units, commercial and industrial properties, parking spaces, and others. Based on the current registration pace, it is projected that the full-month registration count for June could approach 9,000 units.
However, it is important to recognize that property registration data is inherently lagging, as there is a processing period between the signing of a sale and purchase agreement and its submission to the Land Registry for registration. Consequently, the data for June does not yet reflect the impact of the recent downturn in the Hong Kong stock market on the property sector.
Entering June, the Hong Kong residential property market has experienced a deceleration in transaction activity, influenced by the correction in the local stock market. Regarding the primary market, data from the primary residential sales information network and market intelligence indicate that primary transactions for the first 25 days of June recorded over 760 units. It is estimated that the total for the entire month will fall below the 1,000-unit threshold, thereby ending a streak of 16 consecutive months where primary sales exceeded 1,000 units.
It is noteworthy that primary transaction volumes remained at a high level of over 2,000 units per month from March to May. Following the absorption of several new development projects by the market, a decline in transactions is a normal market adjustment, as purchasing power requires time to re-accumulate and be released.
In the secondary market, data compiled from branch networks shows that transactions across 35 major housing estates in Hong Kong over a recent three-week period totaled 153 units. This represents a decrease of approximately 37% compared to the 244 units recorded during a comparable three-week period in the previous month.
Extrapolating from this trend, secondary residential transaction volumes across Hong Kong are expected to show a decline for the month of June.
The analyst further stated that the concurrent decrease in both primary private residential and secondary residential transactions in June is likely to drag down overall property transaction activity. The full impact of this slowdown is anticipated to become gradually apparent in the overall property registration data for July.
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