The market is not fear of US threats of sanctions, with only short-term fluctuations.
The National People's Congress passed the decision to formulate the National Security Law Related to Hong Kong Area and authorized the Standing Committee of the National People's Congress to formulate relevant laws. More than a week after the National People's Congress announced the legislation on National Security Law Related to Hong Kong Area until the act was passed, there has been much discussion in Hong Kong society. However, even if the United States announced a high-profile cancellation of the special treatment granted to Hong Kong, the National Security Law Related to Hong Kong Area had not caused panic selling in the local market. During the period, Hong Kong stocks did not plunge except after falling more than 1,000 points on May 22; the first-hand property sales in Hong Kong continues to be booming. The industry expects a one-year high of 2,200 first-hand property transactions in May. Second-hand property trading is steady, and blue-chip estate Kornhill Gardens recorded a deal with a new high price. The above situations show the rebound in property prices has not been affected.
Journalist Ngan LunLok
Since the announcement of the National Security Law Related to Hong Kong Area on May 21, five brand new projects have been launched in the market. Two of the larger projects, Wetland Seasons Park Phase 2 in Tin Shui Wai and The Campton in Cheung Sha Wan, have sold well. According to the data, Wetland Seasons Park Phase 2 put on sale the first round on May 23, two days after the announcement of the National Security Law Related to Hong Kong Area, involving 200 units. Eventually, it sold 194 units, accounting for about 97%. The Campton in Cheung Sha Wan put on sale the first round of 188 units last Wednesday, and all of them were sold out.
Buyers: The dispute has a short-term impact on the property market.
The following day, the stock market plummeted after the announcement of the National Security Law Related to the Hong Kong Area. The market had expected that the sales of the first-hand property would also be frustrated. While Wetland Seasons Park Phase 2 sold over 90% of the units after the announcement, reflecting citizens' confidence in the market outlook and willing to support Hong Kong with real money. On that same day, Mr. Chong, who entered the market with about HKD14 million, points out that National Security Law Related to Hong Kong Area will only have a short-term impact because the supply in Hong Kong is always insufficient. He believes that the property prices are still rising; Mr. Kwan, who had purchased a unit for HKD18 million, also believes it has a short-term impact, not a long-term worry.
Stimulated by the hot sales of first-hand property, developers step up the deployment of property sales, which has continued to heat the market recently. Wetland Seasons Park Phase 2 launched the second round of 298 units on the past Saturday, and sold 291 units, accounting for about 97%. Po Siuming, the Chief Executive of the Midland Real Estate Residential Department, expressed yesterday that over 300 first-hand property transactions were recorded on Saturday and Sunday. It reflects that prospective buyers have not been affected by recent political and economic environmental factors, and their attitude to enter the market remains positive. He expects this month's first-hand property transactions to be more than 2,200, a record high of nearly a year.
Chen Wing-Kit, The APAC Vice President and Residential Department President of Centaline Property, also points out that Hong Kong's rigid demand is strong. And the purchase of properties can also be used to combat currency devaluation in addition to self-occupation. Therefore, it is slightly affected by the National Security Law. It is expected that the first-hand property transactions will maintain 2,200 since there will be many brand new projects being launched in June.
The second-hand property transactions on the weekend rose by more than 20%.
Although the purchasing power weakened due to first-hand property's hot-selling, the trading volume was still satisfactory. Centaline Property announced the transactions in ten leading housing estates in the past weekend were 11, an increase of 22.2% compared with 9 cases last weekend, returning to double digits. Individual housing estates have even recorded new high sales. High-rise Room 14 in Block G of Kornhill Gardens, Quarry Bay, sold for HKD9.7 million, with the usable area of 524 sq ft, and the usable area sq ft price was HKD18,511, a new high among two-bedroom units.
According to statistics from Midland Branch, the transactions in the top ten housing estates in the past weekend were 12, which remained unchanged weekly. The company believes the main reason is first-hand property attracting the purchasing power. Ten blue-chip housing estates had recorded 313 transactions throughout May, a weekly increase of 6.8% to a new high in fourteen months, and the number has risen for five months. However, in June, developers deploy to launch and sell many first-hand housing estates, and the second-hand property supply will be narrowed. Therefore, it is expected that the first-hand property will continue to lead the property market.
Liao Wai-Keung, the President of Ricacorp Properties, expresses that the current market has limited property supply. The market waits and sees under Sino-US friction caused by the National Security Law Related to Hong Kong Area. And it remains for whether the two countries' confrontation will have substantial measures to affect the local market. However, Liao believes that the National Security Law hasn't had much impact on the market yet, and will not defeat the property market, but only slightly slow down the speed of entering the market.
