Residential Market
In December 2024, transaction volumes in the primary market fell to 887 units, while the secondary market declined to 3,216 units, resulting in an overall month-on-month (m-o-m) decrease of 15.5%. Mass residential capital values rebounded slightly by 0.2% m-o-m in December, following a 0.8% decline in November
- The RMB recently weakened beyond 7.3 against the USD and 0.94 against the HKD, reflecting growing concerns about the Chinese economy and the impact of US tariffs. Analysts expect further depreciation of the RMB, which could potentially accelerate asset allocation from mainland China to Hong Kong in the short term—benefiting the local residential market.
- Following subdued activity in December, developers are now accelerating new project launches in early 2025, offering significant discounts. For example, ORIA in Shau Kei Wan relaunched selected units at discounts ranging from 20.0% to 31.6%, successfully selling 41 out of 47 units on the first day.
- Among major luxury sales transactions, a unit at The Arch in West Kowloon was sold for HKD 305.0 million or HKD 69,350 per sq ft (SA).
Retail Market
Total retail sales declined by 7.3% year-on-year (y-o-y) in November 2024. Major retail categories showed mixed performance: Sales in “department stores” rebounded by 3.5%.
- Sales of “consumer durable goods” dropped by 21.7%.
- Online sales decreased by 7.0%, accounting for 9.3% of total retail sales value for the month.
- Total inbound visitations rose by 8.5% y-o-y in November 2024, reaching nearly 3.6 million. This figure represents 59.5% of the monthly total recorded in November 2018.
- Chinese fashion retailer Unibuy has committed to leasing B-3/F (14,153 sq ft in total) in the China Hong Kong Centre, Tsim Sha Tsui. The reported monthly rental is HKD 800,000, representing an 88% discount compared to the peak rent paid by Hugo Boss in 2012.
- Additionally, China Resources Longdation has reportedly purchased five shopping arcades totaling 118,511 sq ft from the Hong Kong Housing Society for HKD 1.0 billion. These retail arcades are part of residential projects in Cheung Sha Wan (Heya Aqua, Heya Star, Heya Crystal, and Heya Delight) and To Kwa Wan (Jubilant Place).
