Hong Kong's property market experienced a notable downturn as February 2025 saw sales plunge to a five-month low, raising concerns among industry experts and potential buyers alike. The cautious mood gripping the market is attributed to the persistent tensions between the US and China, which have sowed uncertainty among investors.
Data shows February property sales rose 35 percent when compared to the same month last year, with the sales value increasing by 25.3 percent. Nonetheless, these promising annual figures did little to mask the immediate worries of stakeholders within the market. According to Yeung Ming-yee, senior associate director at Centaline Property Agency, "This reflects the wait-and-see mood in the property market before US President Trump took office in January." Her comments highlight the general hesitation buyers are feeling as international relations remain tense.
Added to this sentiment was the long Lunar New Year holiday, during which many citizens traveled abroad, deterring them from entering the market. The time away impacted their participation, leading to what industry analysts call the 'wait-and-see' approach. Centaline Property Agency estimated 4,295 property deals would be completed this past February, with a total value approaching HK$28.24 billion, which marks the lowest since last year.
Midland Realty, another significant player within the industry, projected slightly higher numbers, predicting around 4,303 units would change hands, still reflecting the underlying caution. Their data suggested the transaction value would be approximately HK$27.52 billion. Both agencies' estimates reveal the shared insight among real estate services about the market's current slow pace.
Notably, February marked the third consecutive month of declining property deals since reaching a high of 7,689 transactions and a total value of HK$64.1 billion back in November 2024. The comparison makes clear the downward trend, raising questions about the factors contributing to the diminishing market activity.
Potential buyers are now finding themselves caught between the allure of recovery seen earlier this year and the uncertainties presented by international developments. The upcoming months will be pivotal; as highlighted by experts, the outcome depends on how the global political atmosphere evolves and how it influences consumer confidence and investment strategies within Hong Kong.
Analysts are closely watching these trends, predicting market shifts will continue to reflect broader international developments. With tensions showing no signs of abatement, market watchers remain cautiously optimistic but acknowledge the challenges facing their path to recovery.