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As Asia's financial hub, Hong Kong has reaffirmed its dominance in the global real estate sector, particularly in the super luxury segment. According to the latest "Global Super-Prime Residential Insight" report by Knight Frank, Hong Kong recorded a total of 132 super luxury transactions amounting to USD 2.864 billion (approximately HKD 22.4 billion) in the past 12 months ending March this year, securing its position as the most active super luxury market in Asia. This achievement not only reflects Hong Kong's economic prosperity but also underscores investor confidence in its future development.

The report further notes that Hong Kong witnessed 36 super luxury transactions in the first quarter of this year, marking a remarkable 140% increase compared to 15 transactions in the fourth quarter of last year, indicating a significant market recovery and growth momentum. This growth can be attributed to a 5% to 10% decline in super luxury property prices compared to the peak in the third quarter of 2021, as well as policy measures such as the Hong Kong government's abolition of all stamp duties. These factors have attracted more overseas buyers and investors seeking competitively priced iconic properties in Hong Kong, further boosting market activity and overall demand.

Despite Hong Kong's strong market performance, the report cautions about potential risks the market faces, particularly considering the current limitations in purchasing power. Continued high sales volumes may face challenges if interest rate cuts are not seen in the latter half of the year.

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Globally, 11 cities recorded a total of 1,618 super prime residential transactions over the past 12 months, marking the lowest annual level in three years. Sales volumes for properties valued above USD 10 million amounted to USD 30.527 billion (approximately HKD 238.72 billion), with Dubai leading the global market with sales totaling USD 6.72 billion (about HKD 52.55 billion), capturing a market share of 22%.

In the first quarter of this year, among the 11 major cities globally, there were 426 transactions for properties priced above USD 10 million, showing a quarterly increase of 16.7% but a year-on-year decline of 11.6%. Dubai led with 105 transactions, followed by 56 transactions in New York and 47 transactions in Palm Beach, USA.

In terms of sales value for super prime residential properties, the global market recorded USD 8 billion in sales in the first quarter, returning to its highest level since the second quarter of last year. Hong Kong ranked fourth globally with sales totaling USD 988 million (approximately HKD 7.73 billion), trailing Dubai (USD 1.736 billion), New York (USD 1.218 billion), and Palm Beach (USD 1.066 billion).

While Dubai's market showed strong sales momentum, it experienced a quarterly decline for the first time since 2019. Liam Bailey, Global Head of Research at Knight Frank, noted that Dubai's core position in the global super prime property market contributes to the stable growth of the global market for properties valued above USD 10 million.

In conclusion, Hong Kong's super luxury real estate market's resurgence highlights its pivotal role in the global arena, offering lucrative opportunities for investors amidst challenging economic landscapes. As market conditions evolve, Hong Kong remains a beacon of stability and growth in the luxury property sector, poised to attract continued interest from discerning global investors seeking premium real estate assets.