The purchasing power returns to the second-hand property market since the Fed announced the remaining unchanged interest rate and predicted the low-interest-rate environment to continue, plus with there is no brand new first-hand housing project entering the market. During the past Saturday and Sunday, four leading agents recorded significant increases of transactions in ten leading housing estates, with 14 to 22 cases, respectively, all of which have returned to double digits. About 44 first-hand property transactions were recorded on the weekend.
Hong Kong Wen Wei Po Journalist (Chau Hiu-Ching)
Centaline has recorded the transactions on weekends in ten leading housing estates rising for three weeks, with 18 cases on this weekend, up 38.5% or 5 cases weekly. The estates without any transactions have decreased to two, which are Mei Foo Sun Chuen and Metro City. Kingswood Villas recorded the most of 5 transactions. Taikoo Shing recorded 4 transactions and has sold up to 10 units this month. Chen Wing-Kit, the Vice Chairman and Residential Department President of Centaline Asian Pacific Region, expresses that many potential buyers went out viewing houses since the weather on the weekend was not as bad as the forecast, driving up the transactions. Not only low-cost units in New Territories but also medium-priced units in downtown sell well.
Midland recorded 22 transactions, a new high of four weeks.
The continued low-interest-rate environment in Hong Kong has also boosted buyer confidence. Po Siuming, the Chief Executive Officer of Residential Department of Midland, believes that the global political and economic situation is unstable, and the market funds continue to be allocated. He predicts the low-interest-rate environment in Hong Kong will continue since the US announced remaining unchanged on interest rates, which will benefit the development of the property market. Midland promoted 22 transactions last weekend, up 6 by week, setting a new 4-week high, and the number has maintained at double digits for 18 weeks.
Liao Wai-Keung, the President of Ricacorp, analyzes that the market believes that political changes are relatively stable. He considers no significant sources are affecting the market apart from the National Security Law Related to Hong Kong Area, leading to a relatively stable market. Therefore, the company recorded 19 second-hand property transactions over the weekend, a sharp increase by 10 cases or 1.1 times weekly, and the number is the highest in the past five weeks.
Lee Chi-Shing, the Chief Executive Officer of Hong Kong Property, says that the COVID-19 epidemic in Hong Kong has eased, and many new projects are ready for launching. The focus will be on the first-hand property market in the short term, and the second-hand property trading has also stabilized. He expects that the first-hand property trading in June will continue booming as in last month, maintaining a level of about 2,000 or more. The company recorded transactions over the weekend of 14 cases, up 75% yearly, and hit a 4-week high.
A three-bedroom unit in City Garden sold for price lower 10% than the market level.
Among the transaction cases, there are many transactions below the market price. The Sales Director of Century 21 Northern Mid-Level, Yim Chi-Wan, expresses that a low-rise Room G in Block 13 of City Garden in North Point, was sold for HKD13.6 million to a buyer who wants to change houses in another district. It is a three-bedroom unit in 809 sq ft, and the sq ft price is HKD16,811, lower about 10% than the market level. The original owner purchased it for self-occupation in December 1994, for HKD5.38 million at that time.