Hong Kong property sales slip to 4-month low as tariffs, interest-rate path rattle buyers

Property sales in Hong Kong fell to a four-month low in January, pointing to a more challenging environment for the sector in the coming months as buyers were rattled by rising geopolitical tensions and uncertain interest-rate trajectory.

Deals involving residential and commercial properties and parking spaces dropped 10.4 per cent to 4,938, while the value declined 14.2 per cent HK$36.7 billion (US$4.7 billion) from a month earlier, according to Land Registry data published on Tuesday. Both hit the lowest levels since 3,843 transactions worth HK$27.7 billion in September.

Transactions rose 12.2 per cent from a year earlier, while the value increased 9.1 per cent, according to the data.

Sales are not likely to gain momentum this month, according to Ricacorp Properties, as US President Donald Trump fired what could be the first salvo in a new round of tariff war with trading partners including China, Mexico and Canada. The Federal Reserve last week kept its key interest rate unchanged to reassess inflation and labour market conditions.

“The overall transaction registration volume in February will only remain stagnant, or show a slight increase at best,” said Derek Chan, head of research at Ricacorp. “Property investors have turned cautious” to see how the tariff war plays out, he added.

  

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