Hong Kong property deals rise to 3-month high as buyers take advantage of rate cut

Core Insights - Hong Kong property deals reached a three-month high in October, following monetary policy loosening by the US Federal Reserve and the Hong Kong Monetary Authority [1] Sales Performance - Sales of new and second-hand homes, along with office units, shops, industrial properties, and parking spaces, increased by 4.7% to 7,190 units in October, up from 6,870 units in September, marking the highest total since July [2] - The total value of property sales rose by 8.3% to approximately HK$57.9 billion (US$7.45 billion) [4] - Residential sales hit a three-month high of 5,714 units, the highest since July's 5,766 deals, with total home sales value reaching HK$51.07 billion, the highest since HK$61.06 billion in June [4] Market Trends - Property sales have consistently exceeded 5,000 units for eight consecutive months, indicating a potential market recovery since the downturn in late 2021 [3][6] - Secondary home prices rose by 1.3% in September, marking the largest gains this year and reaching the highest level in over a year [7] - The increase in secondary home prices represents the sixth consecutive month of either increases or stability in the official index [8] Future Outlook - The first round of new residential project offerings in October sold out quickly, leading to expectations of a 5% increase in November property transactions, potentially exceeding 7,500 deals, which would set a new 12-month high [5] - The recent quarter-point rate cut by the Fed and HKMA has led to reduced prime lending rates by major banks, lowering funding costs for businesses and mortgage borrowers, contributing to a more favorable market environment [9]