Q1 Residential Transaction Volume Down by Half Y-O-Y, Market Expected to Recover Lost Ground in 2H

Upcoming Three Months Crucial to Recovery, Subject to Pandemic Control

• Impacted by the fifth wave of COVID-19, and heightened geopolitical tensions, total residential transaction activity is now estimated at 9,187 deals, down 49% y-o-y
• Overall average home prices are expected to drop 5% q-o-q in Q1, with a milder fall in the luxury sector
• Assuming effective control of the pandemic in the next three months, the property market should regain momentum in 2H, with expected price growth of up to 3% y-o-y for 2022

HONG KONG SAR – Media OutReach – 10 March 2022 – Global real estate services firm Cushman & Wakefield announced its Q1 2022 Hong Kong Residential Market Review and Outlook report today. Impacted by the fifth wave of the pandemic, Hong Kong’s total residential transaction volume logged the lowest point since the 6,221 deals recorded in Q1 2016, while the overall average residential price is expected to fall by 5% q-o-q. However, despite the overall market being severely hit by the pandemic, end-user demand remains healthy. As the number of recorded positive COVID cases is now expected to start to decline, the recently proposed revision of the mortgage insurance programme and a potential reopening of the border will likely spur a market rebound.