Hong Kong home prices headed for 15% gain this year, Midland forecast says

Hong Kong property prices are expected to rise by 15% this year, according to forecast from local agency Midland Realty. The city's banks are unlikely to match a potential US interest rate hike, executives from the agency told a press conference. Developers are launching new properties at a faster pace as buyers return to the market, driven by improved market sentiment.

Residential transactions after a two-month slump rose to 1,100 units in August, with forecasts predicting a 50% increase in first-hand transactions and a 10% growth in second-hand transactions by the final quarter of the year. Rents have reached new highs, providing room for property prices to catch up. While higher US interest rates may not directly impact Hong Kong banks, developers will offer competitive prices to attract buyers away from the secondary market.

Despite a recent stamp duty increase on super-luxury homes, demand remains high, with over 80 transactions exceeding HK$100 million in the first half of the year alone.