Luxury Market Revives with Strong Transaction Growth Despite Ongoing Price Volatility
- Luxury transaction volume rebounded sharply in May 2025, rising 73% month-on-month to 45 transactions, driven by stock market rallies and lower funding costs.
- Foreign buyers returned to the luxury market, with notable purchases like a HK$150 million transaction at Deep Water Pavilia and senior banking executives buying properties in prime locations.
- Primary sales surged to nearly 2,300 units in May 2025, supported by strong project pipelines.
- Savills projects price declines in 2025: townhouses (-5%), luxury apartments (0% to -5%), and mass residential (-5%).
- Market sentiment remains cautious due to potential macroeconomic reversals, but further volume rebounds are expected for the rest of 2025.