There were only a few transactions among the ten leading housing estates on weekend. Metro City in Tsueng Kwan had no transaction.
(By Choi KingMan)
Recent large-scale demonstrations and violent activities have caused the second-hand property market, which has been at a low level in recent months, to fall further. There were demonstrations in Mong Kok, Tseung Kwan O and Sai Wan on the past weekend. According to the data of the four leading agents, all transactions of ten leading housing estates were in low level of 2-4 cases, and Metro City in Tsueng Kwan among had no transaction because of the demonstrations, also many index housing estates thought each agent had zero transaction. All four agents pointed out that the recent large-scale conflict continued to aggravate market sentiment to wait and see, leading to a downturn in second-hand property transactions.
Tsueng Kwan branch staff of Centaline expresses house visiting customers decreased yesterday, but refuse to disclose the proportion of reduce, and believes the effect to some branches along demonstration route is large. According to data from four leading agents, Metro City in Tsueng Kwan (one of the ten leading housing estates) had no transaction on the past weekend of two days, while Ricacorp, Midland and Hong Kong Property had promoted 1 case of second hand property transaction separately on the previous weekend days. Centaline Property announced on last Friday that, the house visiting appointments for Metro City on weekend decreased by 22.2% to 35 groups; besides, Metro City had 17 transactions in July, down 20% than 21 cases in the same period of last year, according to Centaline Property website.
On the past two weekend days, Centaline ten leading housing estates only recorded 2 transactions, up by 1 than the previous, with 8 housing estates among had zero transactions, and only Taikoo Shing and Whampoa Garden each recorded 1 transaction.
Centaline: Buyers hesitate to enter the market.
The Vice Chairman and President of Housing Department of Centaline Asia-Pacific Region, Chen WingKit expresses, the social movements spread all over the districts, and buyers hesitate to enter the market, resulting in a narrowing of second-hand property transactions, and the turnover of ten leading housing estates hovered at a low level for two consecutive weeks. Some buyers expect the owners to reduce the price substantially, but owners are only willing to expand the bargaining space to 1% to 4%, resulting in the see-saw situation.
Ricacorp: Trading volume is not possible to rise sharply.
Ricacorp ten leading housing estates just recorded 4 transactions on the past weekend days, no rise or fall weekly, and the number had been less than 10 cases for 13 consecutive weekends. CEO Liao WaiKeung points out that, the second-hand property market has become dull because of the social movements caused by the anti-revision of the Runaway Offenders Ordinance, and the volume of transactions has been hovering at a low level, while some potential buyers from the recent first hand projects turn to the second hand property market and become the major customer source in the second hand property transactions; But the second hand property trading volume is not possible to rise sharply in short term, and the trend depends on the future market changes.
Hong Kong Property: Trading is still supported by the first hand property market.
New project sales also freeze the second-hand property market. Hong Kong Property CEO Lee ChiShing expresses, the sale of first hand property market maintains, and new project ONTOLO in Pak Shek Kok nearly sold out in the second round on weekend, bring positive stimulus to the property market. In particular, new projects offer a number of mortgage concessions to attract buyers into the market, while the second-hand property trading is difficult to improve. On the past two weekend days, Hong Kong Property recorded 2 transactions, down by more than 33% per week, and the turnover continued to be weak.
Under the internal worries, foreign aggression also adds haze to the property market. The Midland Residential Department Chief Executive Officer, Po Siuming believes, the Sino-US trade war has progressed repeatedly, and the external economy has fluctuated dramatically, leading the wait-and-see mood to increase. The United States has just implemented a 0.25% interest rate cut, which is good news for the real estate market, so it is believed that buyers will regain confidence in the market when the social climate improves. However, Liao WaiKeung worried, even if the United States announced a 0.25% interest rate cut, it will not stimulate buyers to enter the market, and they still turn to the first-hand property market mainly, coupled with the second-hand property owners are strong on pricing, leading to see-saw situation, so the second-hand property transactions will reduce.
