Mainland flat viewing tours plunge by 95% during May “Golden Week”

Posted: May 6 2015Last Updated: May 6 2015
6 May 2015 - As an important holiday for Hong Kong’s tourism industry, the May “Golden Week” has regularly filled the city with tens of thousands of mainland tourists along with billions of cash ready to flow into the Hong Kong real estate market. This year, the number of mainland tourists continued to rise despite the newly implemented “one-visit-per-week” policy. The property market, however, remained quiet, resulting from the continued impact of the Buyer’s Stamp Duty (BSD) which constrains non-Hong Kong permanent residents and companies from speculative investment. This has led to a drastic 95% reduction in the number of flat-viewing tours.
According to Centaline, the Golden Week in May and the National Day holiday in October are usually peak seasons for real estate agencies and developers. Viewing tours used to draw at least 100-200 groups of deep-pocketed mainland buyers to their new launches before the BSD was imposed. For example, 10-15% of the flats sold in Lohas Park Phase 2, Tseung Kwan O, are registered under Chinese buyers.
Analysts believe that the trend is likely to continue given that the government shows no signs of relaxing the tightened regime in the near future. Recent local protests against mainlanders and the PRC government’s anti-corruption campaigns are also considered as important factors contributing to the severe drop this year.

You May Also Like

Despite the Current Coronavirus Crisis, Real Estate Experts Don’t Foresee Prices Fal

12 March 2020 - Amidst the black-swan emergence of the coronavirus, rather than simply state my own views about the potential impact on property prices, I want to also summarize what various real estate experts across different parts of the industry
By: Joshua Han Miller

7 Tips to Consider if You Plan to Sell Your Home in Hong Kong

5 October 2020 - Events over the past year or so have contributed to significant economic turmoil in Hong Kong and by extension seriously upset the once predictably expensive local home property market. As a result, increasing numbers of homeowners
More Insights

Tight on time? Let us do the searching for you!

OKAY.COM - iOS App StoreOKAY.COM - Android Play Store
Let's Connect
15/F, Wilson House, 19-27 Wyndham St., Central, Hong Kong
+852 2102 0888
Do you want to login
You already have an account with us? How about logging in?