The Budget has not introduced measures to relax the "strict measures" of the property market, but it has not hindered the active trading in the second-hand property market. According to the data of the four major agents, they had recorded 18 to 23 transactions in ten leading index blue-chip second-hand housing estates on Saturdays and Sunday (February 29 and March 1), maintaining excellent performance for half a month. Chen Wing-Kit, the Asian Pacific Region Vice Chairman and Residential Department President of Centaline, believes that the housing atmosphere will continue to improve as long as the COVID-19 epidemic is not deteriorated, and the overall property market will warm up in March.
Journalist (Chau HiuChing)
Chen Wing-Kit points out that the first-hand property transactions were low affected by the Lunar New Year holiday and the epidemic, with over 350 cases in February, while the overall property market will warm up in March under developers' actively launch. Centaline has recorded 22 transactions on Saturday and Sunday in ten leading housing estates. The number decreases 1 case from the previous Saturday and Sunday, and it has been above 20 for two consecutive weeks. The most transactions were recorded in Kingswood Villas, with a total of 7 cases.
Owners cut prices to attract customers, drive up the trading.
The ongoing epidemic has also led to a reduction in second-hand property prices, making a boom in the second-hand property market. Po Siuming, the Chief Executive Officer of Residential Department of Midland, discloses that many owners have weakened their bidding and are willing to increase the bargaining range to promote trading. He also says that it stimulates buyers to take advantage of the opportunity to enter the market, and drives up the trading in ten leading housing estates to 23 transactions. Also, the number has been above 20 for two consecutive weeks. Some owners accept the reality and reduce the price to attract customers, leading the activities of house visiting to rise. Many users who have rigid housing demand seize the opportunity to find bargains. So it is predicted more transactions with price cut will appear.
A three-bedroom unit in Kingswood Villas sold for HKD6.26 million, with the sq ft price at HKD9,952.
A Regional Manager of Midland, Lai Chan-Keung expresses that Maywood Court, Kingswood Villas, has one transaction, and it is a three-bedroom unit in usable area of about 629 sq ft with the covered area in about 825 sq ft. He says that the original owner had asked for about HKD6.38 million earlier and finally sold for HKD6.26 million after negotiation, with the usable area sq ft price at about HKD9,952. It is understood that the original owner spent about HKD2.38 million to purchase the upper unit in February 2012, and earned book profit of HKD3.88 million this time. The house had appreciated about 1.6 times.
"fixed-rate mortgage" plan is expected to help release purchasing power.
The President of Ricacorp Properties, Liao Wai-Keung, also expresses that the recurring transactions with a price cut in the second-hand property market attract some funds and drive up the trading. He says that some buyers even speed up the pace of entering the market due to the worry of bargains being sold out fast. The United States would be likely to cut interest rates this year. So it is predicted that the purchasing power can continuously be release, and second-hand property trading in the following one or two weeks will maintain active. Ricacorp has recorded 19 second-hand property transactions on Saturday and Sunday in ten leading housing estates, a second high in the past 18 weeks. The Budget has not added or subtracted the "strict measures" of the property market. The Chief Executive Officer of Hong Kong Property, Lee Chi-Shing believes it introduced a fixed-rate mortgage test program and many relaxation measures to ease people's hardships. He agrees that these improve the social atmosphere and help gradually release the purchasing power.
