According to JLL’s Hong Kong Residential and Land Market Review 2016, notwithstanding the latest stamp duty measure, residential prices are expected to rise up to 5% next year.

Land prices rebounded in the second half of 2016, as more prime sites were made available for sale amid active participation from both local developers and developers from mainland China.

About 62% of the residential sites made available for sale via government tender this year were bought by developers from the mainland, an increase from the 53% recorded in 2015.

Their increased participation in the local public land sales market has been driven by a combination of yuan devaluation, a desire to diversify away from mainland cities and supply constraints of the local market over the longer-term.

Average monthly residential sales rebounded by 55% y-o-y to 6,123 in the second half of 2016. A buoyant stock market, post-Brexit capital inflows seeking safe-haven investments and strong pricing of the public land sales market all contributed to the uplift.

Capital values of residential properties in Hong Kong rebounded by 9.5% between May and October this year.