CRIC: The transaction area of first-hand private residential properties in Hong Kong exceeded 6 million square feet in the first half of the year, expected to reach a near 9-year high.

Analyst Samson Sum from Colliers International pointed out that the property market in Hong Kong has been very active this year, with strong sales in the primary market, showing outstanding performance. Data shows that in the first half of this year (up to June 23), the total practical area involved in the sale of first-hand residential properties reached 6.1 million square feet, which is more than 34% higher compared to the approximately 4.54 million square feet in the same period last year. It is believed that the final figure will surpass the approximately 6.13 million square feet in the first half of 2019, reaching a new high after 9 years since the first half of 2017. Sum added that using the "total area" to measure the speed of sales in the primary market can better reflect the absorption of supply in terms of area. Especially when there are significant differences in unit sizes, or when a project includes diverse unit types, using "total area" as an indicator is more valuable. In terms of unit size, demand for larger units has driven a significant increase in transactions of medium to large-sized units in the first half of this year (up to June 23). The transactions of Class C units (with a practical area of approximately 753 to 1,075 square feet) increased significantly to 845 units, about 1.2 times higher than the same period last year; transactions of Class D units (with a practical area of approximately 1,076 to 1,721 square feet) and Class E units (with a practical area of 1,722 square feet or above) increased by approximately 65.9% and 45.6% respectively. The significant increase in transactions of these units is believed to be related to the demand for upgrading to larger units. Nevertheless, small to medium-sized units are still the main force in the market. Class A units (with a practical area of approximately 430 square feet or below) and Class B units (with a practical area of approximately 431 to 752 square feet) recorded 5,350 and 4,522 first-hand transactions respectively in the first half of the year, an increase of approximately 19% and 14.2% respectively compared to the same period last year. Sum continued that with the significant increase in transactions of medium to large-sized units, the average practical area of each first-hand residential property transaction has increased to approximately 535 square feet, about 9% higher than the average of approximately 490 square feet in the first half of last year. It is worth noting that the average practical area per transaction is still below the level of over 700 square feet in 2014, but it has shown signs of stabilization compared to the average of approximately 452 square feet in the second half of 2022. The main reason for this is the significant increase in transactions of medium to large-sized units.