Hong Kong Wen Wei Po News (By Yan Lunle)
On the first weekend after entering the Year of the Pig, the number of transactions recorded by the four leading real estate agents reduced by 40% to 60% compared with number of last week. The purchasing power was frozen during the Lunar New Year holiday leading transaction less in traditionally, while it is expected that the second-hand transaction volume will gradually return to normal after the holiday pushing the overall property market in better trend and the second-hand transaction volume will rebound, insider pointed. On the other hand, the market recorded a rare fast resale of small cost property, the original owner of which had to pay an special stamp duty (SSD) of about HKD1.01 million.
It is high floor room F in block 37 of City One, which in usable area of 284 square feet, Chen Junyan from Midland expressed. It is reported that the original owner bought the unit in the form of internal transfer in November last year by HKD 4.78 million, then sold it by HKD 5.07 million after holding for only three months, although the book profit was HKD 0.29 million, but the owner needs to pay a 20% of special stamp duty (SSD) in about HKD 1.01 million because the unit was resold again less than half year .
The second hand property transaction slows down because of the long-term holiday.
The second hand property transaction decreases under the effect from the Spring Festival holiday. 4 cases of transactions were recorded in the ten leading housing estates from February 9 to 10, down 50% than 8 cases in the previous weekend, Midland pointed. The property boom market appeared ahead of time in January and the second-hand property trading was active before the new year, however, the second-hand transaction on the first weekend of the pig year was at a low level due to the influence of traditional festival, the CEO of Residential Department of Midland, Bu Shaoming expressed. It is showed the prospective buyers are active and visit around for quality flats, plus with the potential customers of first hand property are many with some may turn to the second hand property market, so it is expected that the second-hand trading volume will gradually return to normal after the Lunar New Year holidays, leading the overall market in good trend.
Centaline recorded 4 cases of transaction in ten leading housing projects on the past two days, down nearly 64% than 11 cases on the previous weekend. Many citizens traveled outside or went to pay a new year call during the holiday, leading less transactions, and the property market has not yet returned to normal, while it is believed property market may warm up and transaction will increase as the effect from the holiday will decrease next week, the Asia Pacific Vice Chairman and President of the Residential Department of Centaline Property, Chen Yongjie pointed.
Owners and buyers generally went out to travel on last weekend when it still was holiday, and suspend the pace of trading, making the transaction volume close to zero, the President of Ricacorp, Liao Weiqiang said. At the same time, after the new year holiday, there was no large-scale focus project being launched in the first-hand market, so the overall market is dull. There were 5 transactions in the ten leading housing estates on Saturday and Sunday, down about 38% than the 8 cases on the previous weekend, according to the network data of the Ricacorp Branch.
Although the trading volume decreased in the past Saturday and Sunday, but it is believed the second hand property trading will be steadily rising after the Lunar New Year, because citizens have strong desire of purchasing house and are optimistic about the market outlook in view of the satisfactory sales of the first and second hand markets before the holiday, plus with market predicted many positive factors like the Sino-us trade negotiation will success and interest rate hike will pause and so on, he continue pointed.
3 cases of transaction were record in ten leading housing projects on weekend, down 25% by week, according to Hong Kong property statistics. Many new projects are ready and will be launched after the Lunar New Year, and a lot of buyers are more confident on market trend under recently the Fed’s suggestion or suspension of interest rate hikes may pause, so it is expected the owners and buyers will return to the market and enliven the property visiting as the factors of travel outside decrease, the the chief executive of Hong Kong Property, Li Zhicheng said.
The transaction price in Tsuen Wan Centre rebounded by 15%.
Although the transaction volume decreased, but the transaction price rose. The low-rise Room B of Chengdu Building ( Block 14) in Tsuen Wan Centre in usable area of about 377 square feet with 2 rooms layout was sold by HKD 4.82 million and the usable area sq ft price is about HKD 12,785, Zhong Jiahao from Midland expressed. The original owner bought the above house at about HKD 29.38 million in May 2014 and earned book profit of about HKD 1.882 million. The price for the similar units of the same size in the project was low to HKD 4.19 million, which means the price has risen by HKD 0.63 million or 15%.