(By Yan HaauLing)
Benefiting from the US interest rate cuts coupled with the ideal first-hand property sales and the willingness of second-hand owners to reduce prices, the second-hand trading atmosphere is booming. On the past weekend (September 21 to 22), the second-hand transactions of the ten leading housing estates through four leading real estate agents recorded a rise of more than 40% on a weekly basis, and Midland and Centaline recorded 14 transactions respectively at the weekend, also the second-hand property transactions through these two hit a three-week high.
The APAC Vice President and Residential Department President of Centaline Property, Chen WingKit expresses, the trading atmosphere in property market has improved recently, and first hand property recorded an ideal sales situation, driving up the trading in the second hand property market, with some potential customers taking the first to turn to the second hand property market for bargains, besides there are mainly small and medium size units at HKD5-8 million, also the transactions are concentrated in the New Territories. He also said that the United States will cut interest rates again, and the negative interest rate will return, which will enhance the confidence of buyers in the market and succeed in speeding up the second-hand transactions.
Customer in the district spent HKD5.57 million to buy a three-bedroom unit of Kingswood Villas.
Kingswood Villas in Tin Shui Wai recorded a transaction of one three-bedroom unit under HKD6 million. Lam KaLun from Many Wells expresses, middle-floor room D in block 4 of Chestwood Court is 543 sq ft in the layout of three-bedroom two halls. The new buyer is from the same district who had been looking for housing in Tuen Mun or Tin Shui Wai, and decided to actively buy one as the property prices have fallen recently. Since the property price is in line with budget, so buyer decided to buy at HKD5.57 million with the sq ft price at HKD10,258, belong to market price. The original owner bought it in 2009 for about HKD1.43 million.
Midland has also recorded 14 second-hand property transactions among the ten leading housing estates in the past two days, up 40% on a weekly basis, recording double-digit transactions for four consecutive weekends and hitting three weekend highs.
The Chief Executive of the Midland Real Estate Residential Department, Po Siuming expresses yesterday that, even though there are no banks in Hong Kong following United States’ successive interest rate cuts, but it is believed that Hong Kong's low interest rate environment will continue and will bring positive effects to the property market. In fact, many first-hand property sales in this month have been hot, pushing the leading market to rise, and many second-hand property owners have softened their attitudes and cut prices, making more "popular flats” and “price cut units” to be sold immediately, also increasing the second-hand property trading.
Midland's transactions on Saturday and Sunday rose by 40%.
He also points out that, the momentum of first hand property in this month is strong, and there will be new projects sales in the future, then the first hand property will lead the market, also it is estimated that more than 2,000 transactions can be made in one month.
In addition, Hong Kong Property recorded 4 second-hand transactions at the weekend, which was doubled by the week. The Chief Executive Officer of Hong Kong Property, Lee ChiShing expresses, continued interest rate cut in United States means that there is no urgent pressure to raise interest rates in Hong Kong, so it is believe that Hong Kong interest rates will remain at a low level and have a positive impact on the market, while the external economic environment and political disputes in Hong Kong will continue to add variations to property market, furthermore, some second hand property owners put on sale their houses with price cut recently, leading more "popular flats” to appear and attracting users to actively visit houses, which has led to an increase in the visiting activities of the districts.
Hong Kong: first-hand trading suppresses the second-hand property trading.
Although the second-hand property trading atmosphere is generally good, with the deadline for the first-hand property vacant tax approaching, Lee ChiShing believes the pace of developer's launching will be further accelerated, at that time, a strategy of closing to market prices will be adopted to grab the focus, pushing buyers to enter the market and suppressing the second-hand property trading, generally speaking, he expects the development of the property market in the fourth quarter to be cautiously optimistic.
The President of Ricacorp Properties, Liao WaiKeung points out that, a number of new projects have been put on sale recently, and the first-hand property market has responded enthusiastically, while some potential buyers who had not purchased returned to the second-hand property market, stimulating the second-hand property trading. Moreover, the second-hand property owners are soft on attitude, and more willing to reduce the price, making buyers to take the opportunity to enter the market. Although the social movement has lasted for several months, but there is still demand from the users, and it causes the owners to reduce the price and promotes more transactions. Ricacorp recorded 13 second-hand transactions at the weekend, up 44% by week. .
