More affluent buyers are likely to snap up luxury homes in Hong Kong in the coming months, according to agents, as the city’s booming stock market and government policies that attract well-heeled investors boost the outlook for the high-end property segment.
Advertisement
“Some ultra-wealthy buyers have earned substantial profits from the stock market over the past six months and are now reallocating part of their capital into the super luxury property segment, taking advantage of relatively low prices,” said Derek Chan, head of research at Ricacorp Properties.
“This trend is expected to continue into the fourth quarter, with an increasing number of transactions likely to take place.”
Two homes worth at least HK$1 billion (US$129 million) changed hands so far this year, according to data compiled by Ricacorp. That coincided with Hong Kong reclaiming the crown as the world’s top initial public offering (IPO) venue this year, beating New York.
In the first nine months of the year, funds raised from new share sales in the city surged 220 per cent, further solidifying the local stock exchange’s claim on the top spot in the global IPO rankings.
Advertisement
A total of 66 companies raised US$23.27 billion on the main board of the Hong Kong stock exchange during the first nine months, according to data released on Tuesday by the London Stock Exchange Group.