(By Chau HiuChing)
The first round of 354 units of Billion’s Aurora in Tsuen Wan were all sold on Saturday, and the over-subscription of over 24 times is the second highest this year. The hot sale of new projects drives some potential customers to turn to the second-hand property market, showing the market demand is still strong. Data shows the transactions in ten leading housing estates from the four major agents on weekend slightly rose, with 3 to 6 cases were recorded respectively, while the transactions were still in low level since the social turmoil has affected the house visiting number in some districts.
The Asia Pacific Region Vice Chairman and Residential Department President of Centaline, Chen WingKit analyzes, the United States’ announcement of interest rate cuts in this month and the low pricing of new projects in Tsuen Wan enhance buyers' confidence in entering the market. In addition, the draw lots results of the HOS had been announced on Friday, so it is expected that some customers focus to HOS flats will gradually return to the second-hand property market, besides some individual owners are willing to be realistic and cut prices, thus it is expected that the second-hand property transactions will rebound in the second half of the month. Centaline recorded 6 transactions on Saturday and Sunday, an increase of 2 cases per week, but the number is still at a low level and has been under ten cases for 14 consecutive weekends, what’s worse there are 7 housing estates recorded zero transactions.
The trading is estimated to be dull in the short term.
The Chief Executive Officer of Hong Kong Property, Lee ChiShing also believes, some potential customers flowing back to the second-hand small cost property market will support the whole second-hand property market performance, leading the whole market to a situation of price down transaction up. This company recorded a total of 3 transactions on Saturday and Sunday from the four leading housing estates in West Kowloon and Amoy Gardens.
However, social turmoil has gradually widened the impact of various industries.The President of Ricacorp, Liao WaiKeung points out that, in the past weekend, retail, food and tourism have been hit, and the property market has not been fortunate to be spared, while the price cut from most owners in the second hand property market has not yet reached the expectation of prospective buyers, then some of the owners started to widen the price reduction to facilitate the transaction, as a result, although the trading volume has increased by week, but it still up and down in a low level. Liao expects, the second-hand trading volume will remain at a relatively low level in the short term, and it will not rebound sharply unless the influence of social turmoil gradually declines and economic activities improve. This company recorded 4 second-hand property transactions on Saturday and Sunday, doubled year-on-year.
Flat in Amoy Gardens was sold with price cut of HKD0.5 million.
Under the pressure, there are many cases of price reduction in the market. The Assistant Regional Manager of Midland Real Estate, Woo YuenKei reveals, a high-rise three-bedroom unit of Block F in Amoy Gardens in usable area of about 375 sq ft had been put on sale in the middle of July at about HKD6.5 million and sold at HKD6.18 million at the end of July, while the buyer gave up worrying about the market outlook, so the original owner again put on sale it for HKD6.2 million, then it finally was sold at HKD6 million, a price cut of up to HKD0.5 million, with the usable area sq ft price at about HKD16,000. The original owner purchased the above property for about HKD1.4 million in March 2010, and largely earned over HKD4.6 million from this resale, with the property appreciation at about 3.3 times. Midland recorded 4 transactions in the second-hand property market on Saturday and Sunday, 1 more than that on the previous.
