According to the latest data tracked by 28Hse, bank valuations for second-hand properties across 20 key housing estates saw a general increase in March. HSBC’s valuations show that 16 of the estates recorded month-on-month increases for both large and medium-sized units. Among them, Tsing Yi’s Tierra Verde stood out as the top performer, leading the charts with a 4.59% increase for large units and a 4.44% rise for medium-sized units.
March Valuation Rankings for Large Units: Tierra Verde Records the Highest Growth at 4.59%
For large units, 16 housing estates saw valuation increases ranging from 0.44% to 4.59% in March. Valuations for large units in Kennedy Town's The Belcher’s and Lai Chi Kok's Aquamarine remained unchanged, while Kowloon Bay's Telford Gardens and Sha Tin's City One experienced slight declines of 0.26% to 0.79%.
The estate with the largest increase was Tsing Yi’s Tierra Verde, with the HSBC valuation for a specific unit (Block 2, 33/F, Unit B, usable area of 772 sq ft) reaching HK$12.99 million this month, a month-on-month rise of HK$570,000 or 4.59%.
For the same unit, Bank of China and 28Hse valuations were HK$13.21 million and HK$12.13 million, reflecting month-on-month changes of 3.04% and no change, respectively.
The second-highest increase was recorded at Hung Hom’s Whampoa Garden. A unit in Phase 1 (Juniper Mansions, Block 2, 15/F, Unit B, usable area of 777 sq ft) saw its HSBC valuation rise from HK$9.57 million in February to HK$9.96 million this month, an increase of 4.08%. Bank of China and 28Hse valuations for the same unit were HK$9.66 million and HK$8.757 million, with respective increases of 3.09% and 3.11%.
Medium-Sized Units Follow Similar Trends, with Tierra Verde Leading at 4.44%
For medium-sized units, 16 estates recorded valuation increases ranging from 0.18% to 4.44% in March. Valuations for Kennedy Town's The Belcher’s and Lai Chi Kok's Aquamarine remained stable, while Kowloon Bay's Telford Gardens and Sha Tin's City One saw slight declines of 0.32% to 0.67%.
Once again, Tsing Yi’s Tierra Verde led the rankings, with its valuation for medium-sized units rising by 4.44%. This reinforces its status as the top-performing estate in both large and medium-sized unit categories for March.
March Valuation Rankings for Medium-Sized Units
The top performer for medium-sized unit valuations in March was also Tierra Verde in Tsing Yi. A specific unit in Block 8, 26/F, Unit A (usable area 518 sq ft) saw its HSBC valuation rise to HK$8.46 million, a month-on-month increase of HK$360,000, or approximately 4.44%. The same unit was valued at HK$8.36 million by Bank of China (up 2.96%) and HK$7.87 million by 28Hse (up 1.1%).
The second-largest increase was recorded at Whampoa Garden in Hung Hom. A unit in Phase 2, Block 1 of Golden Peach Court, 14/F, Unit C (usable area 466 sq ft) saw its HSBC valuation rise from HK$7.03 million in February to HK$7.31 million in March, an increase of 3.98%. Bank of China valued this unit at HK$7.18 million (up 3.01%) and 28Hse at HK$6.289 million (up 1.99%).
Increased Transactions Drive Higher Valuations, Positive Outlook for 2023 Property Market
Market analysis indicates that widespread valuation increases reflect a recent surge in property transactions. February saw multiple rounds of sell-outs for new projects like Sierra Sea, alongside the release of various positive market signals, with industry experts optimistic about the property market’s outlook this year.
Firms such as Citibank, Knight Frank, Cushman & Wakefield, and JLL generally forecast a 5% to 8% increase in property prices, while seasoned professionals including Shih Wing-ching, Louis Chan of Centaline, and Jacinto Tong predict even higher growth, expecting annual price increases of 15% to nearly 20%. Across the board, expectations are that both transaction volumes and prices will rise this year.
Financial Secretary Paul Chan also noted that the overall real estate market sentiment has significantly improved. The residential market saw both transaction volumes and prices rise, with total transactions reaching 63,000 cases for the year—a four-year high. Property prices and rents increased by 3.3% and 4.3%, respectively, officially ending the three-year downturn. Non-residential property also rebounded, with narrowing declines in both rents and prices.
Additionally, the US Federal Reserve is expected to continue cutting interest rates throughout the year. Even though local rates may not adjust in sync, Hong Kong banks have recently introduced more aggressive mortgage incentives, further encouraging buyers to enter the market. Banks have also adjusted valuations for multiple estates upward, reflecting the recent increase in actual transaction prices.
