2024-05-03 28Hse Editor
Today’s full reopening of borders between Hong Kong and the Mainland has revived Hong Kong's property market. According to data from local real estate agencies, the number of buyers in the market in various districts has recently increased by 20 to 30 per cent, and owners have also narrowed the bargaining range in negotiation.
In City Garden, North Point, some units were put up for sale for HK$15 million with a price increase of HK$1.2 million. In Discovery Park, Tsuen Wan, owners even took back their keys to close the listing. Fearing that home prices would become more expensive later, some buyers chose to enter the market first.
This past Saturday and Sunday – the first weekend of February (February 4-5) – the four biggest property agents recorded a significant increase in the number of second-hand transactions, with the highest weekly increase of 70 per cent (see table). Some agents expect the volume of second-hand transactions to rise to 5,000 this month, a new 19-month high. Tsang Yip-chun
Reviewing the performance of each district, Brian Choy Ka-chun, sales director at Century 21 Sunrise Property Agency, said that after the announcement of the full customs clearance, the number of flat inspections in North Point District went up by 30 per cent. Owners have narrowed bargaining ranges from 10 to 15 per cent to a current range of 5 to 8 per cent, and there are even cases of increases in price.
For example, a 958-square-foot low-rise garden-view unit in City Garden was originally offered for sale at HK$13.8 million, but its latest price rose by 8.7 per cent to HK$15 million.
Ellen Wong Wai-ha, senior district sales manager at Centaline, said that the number of flat viewings in Mei Foo District also increased by 30 per cent, but owners have become more rigid in negotiations, and have increased asking prices with a bargaining range of only 1 to 3 per cent. However, many buyers still hope to receive the goods at the price last November, causing a tussle between the two parties.
Middle floor of Metro Town sold at an increase of HK$250,000
In Tseung Kwan O, a new transaction with an increased price was recorded for middle floor Room H of Block 6, Metro Town, with an area of 594 square feet. The original owner set an asking price at HK$8.5 million and, upon observing improvements in the market, kicked prices up by HK$250,000. The buyer eventually took over at HK$14,731 per square foot.
Ken Lau, Chief Area Director of Hong Kong Property Services (Agency), also revealed that the bargaining range for property owners in the district has narrowed to only 2 to 3 per cent, and the number of property viewings has increased by 30 per cent.
As for other areas in the New Territories, Centaline Property’s Kelvin To Man-chun said that driven by the good news, many buyers hoped to enter the market before Chinese New Year.
The district of Garden Rivera, Sha Tin, recorded about 23 transactions in January, of which Garden Rivera accounted for 3. The latest case comes from high-rise Room 08, Block C, a 2-bedroom unit with an area of 242 square feet.
The asking price was about HK$4.48 million when the property was put up for sale, but was reduced to HK$4.26 million earlier and was countered by two groups of customers, one of which made an offer increased by HK$20,000. The property was sold for HK$4.28 million at HK$17,686 per square foot.
About 20 per cent of properties in Tsuen Wan have risen in recent months
Victor Chung, associate district manager at Midland Realty, pointed out that in Tsuen Wan District, about 20 per cent of the listing owners have increased their prices in recent months, and another 10 per cent of the listings have been closed for sale.
However, the number of property viewings in this district increased by 45 per cent in the past week, and the transaction volume in recent months increased by 20 per cent month-on-month. Among them, Room D on the middle floor of Block 8, Discovery Park, covers an area of 600 square feet. The owner originally released the listing in August last year and released the unit’s keys to a property agency in October, with an asking price of HK$7.98 million.
But upon receiving interest from multiple prospective buyers, the owner immediately closed the listing and took back the key, to observe the market for two more months before making a decision.
Kelvin Pang, senior regional marketing director at Ricacorp, also said that the number of property viewings in Tsing Yi District has increased by 50 per cent. In addition, many owners of small units have counter-offered HK$100,000 to HK$200,000 after negotiation. However, buyers may not be willing to immediately enter the market, which would result in a tug-of-war between buyers and sellers.
The number of property viewings in Sheung Shui has doubled
Jeff Wong, Assistant Sales Director of Midland, said that before Chinese New Year in Sheung Shui District, there were only 5 to 6 groups of property viewings per week on average. Following the news of the full customs clearance after Chinese New Year, the number of property inspections doubled immediately.
The bargaining range has also significantly narrowed from about 5 to 8 per cent to only 1 per cent. However, because most of the owners simply wish to sell an original listing to buy a new one, there have been no significant price increases or counter-offers. Due to fears that the owner will raise flat prices significantly, buyers have been more willing to take over high-quality flats at the market price or higher than the bank’s valuation.
Recently, buyers have also been more active towards high-quality flats, and were more willing to take over at the market price or higher than the bank’s estimated price to secure the unit before the owner raised the price significantly.
For example, Room H on the middle floor of Block 1, Belair Monte in Fanling, with an area of 427 square feet, was sold for HK$4.85 million, or HK$11,358 per square foot, which was slightly higher than HSBC’s valuation of HK$4.78 million.
Agents expect to see 5,000 second-hand cases this month
Yuen Long district has also seen a rise in property viewings. Ken Wong, deputy regional sales manager at Centaline, pointed out that the number of second-hand property viewings has increased by 50 per cent on a weekly basis, as buyers’ views on entering the market have brightened.
Andy Leung, regional sales director at Midland, added that recently, property owners in the Tuen Mun area have reduced their negotiation range to 3 to 5 per cent, while prospective buyers have increased their range to 15 to 20 per cent week-on-week.
Sammy Po Siu-ming, CEO of Midland’s residential division for Hong Kong and Macau, said that many homeowners and prospective buyers are optimistic about the market outlook, and there are many large-value and high-priced transactions in the market.
Some homeowners have narrowed the room for bargaining, and some counter-offers range from about 3 to 5 per cent. With the upcoming launch of first-hand properties, which will boost buyers’ purchasing power, it is expected that 2,000 first-hand transactions will be recorded in February, a three-fold increase month-on-month. Second-hand transactions are also expected to rise to 5,000, hitting a 19-month high.
The second-hand market will also be positively stimulated when developers go all out in launching new properties, according to Willy Liu, chief executive at Ricacorp.
Top 10 second-hand transactions during weekend
Agency No. of transactions Week-by-week change
Midland 23宗 +53.3%
Centaline 22宗 +69.2%
Ricacorp 18宗 +6%
Hong Kong 14宗 +75%
Property
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