Chen Maobo: Hong Kong property market has almost returned to pre-pandemic levels, office market is starting to stabilize

On March 16, Hong Kong Financial Secretary Paul Chan Mo-po pointed out at a luncheon of the Hong Kong Professional Alliance that Hong Kong's property prices rose by about 3.3% last year and have been continuing to rise in recent months, but not at a rapid pace. The residential property transaction volume has remained between 5500 and 6000 units in the past 3 months, estimated to be between 60,000 and 70,000 units annually. The property market has almost returned to the pre-epidemic level, and he also believes that the Hong Kong commercial land market is beginning to stabilize. He stated that there are 9 residential land plots on the land sales table for the next fiscal year, equivalent to over 20,000 residential units, exceeding the target supply of 13,500 units. The Hong Kong government will carefully monitor market developments to promote land supply. When the property market is prosperous, the government will release more land; if the property market is relatively stable, the government will be more cautious, and assess the situation to either advance or retreat. Paul Chan Mo-po mentioned that the Hong Kong office market has undergone adjustments in recent years, with a drop of about 7% last year and a slight decline up to the present, but now it has stabilized. The Hong Kong government will not sell commercial land from 2024 onwards and has various measures to allow the market to absorb inventory, such as encouraging the market to redevelop student dormitories or other purposes in suitable locations. He also mentioned that in the past two to three months, some foreign sovereign wealth funds and long-term funds have entered the market to acquire high-quality commercial buildings in Hong Kong. The Hong Kong government also requires wholly-owned Hong Kong investment companies to lead sovereign wealth funds in investing in suitable office properties. The government has been actively seeking foreign investment, providing matching services for office buildings and tenants, and assessing the stabilization of the office market.