over US$10 million, but investors are delaying big ticket purchases against an uncertain economic backdrop, with the number of deals plummeting by more than half in the first half.
The city recorded 60 such residential transactions in the first half, 61.3 per cent lower than the 155 seen a year earlier, according to Knight Frank. The number of deals, however, was 15.4 per cent more than Los Angeles, which came second.
“Against the backdrop of quantitative easing in different parts of the world, luxury residential assets are [a] good store of value for investors,” said Maggie Lee, senior director and head of residential agency at Knight Frank Hong Kong. “Coupled with the scarcity [of] luxury homes in Hong Kong, the buyers are still optimistic these assets would bring capital appreciation over a longer-term period.”
The outlook for Hong Kong’s luxury property sector, however, does not look bright. JLL expects prices to fall by 10 to 15 per cent this year because of decreasing capital flow from the mainland to
