(Journalist Ngan Lun-Lok)
The accumulated purchasing power re-enter the market as the COVID-19 epidemic in Hong Kong has eased, and the low-interest-rate environment continues. The latest first-hand housing project sales are ideal under the stimulation, with about 511 units sold over the weekend. Reciprocally, the second-hand property transactions are suppressed and fall. Centaline Property announced yesterday that the sales in ten leading housing estates the past two days were 15 cases, down 16.7% weekly. The industry believes that the recent bargaining space from owners is narrowing, the first-hand property sales is coming, so, it is expected that the second-hand trading volume will hover at the current level.
The APAC Vice President and Residential Department President of Centaline Property, Chen Wing-Kit, expresses that the weekend sales of new projects in Tsueng Kwan were hot, attracting many first housing buyers, and the customers want to change houses. Second-hand purchasing power is locked. He points out that the low-interest-rate environment continues, property prices gradually increase, buyers accelerate the pace of entering the market. Some large-scale housing estates in the New Territories are again popular with first-housing people. Kingswood Villas recorded in the past weekend with 5 transactions, accounting for one-third of the sales in ten leading housing estates on the weekend.
Midland: Funds inflow continues.
According to the Midland Property Branch statistics, the transactions in ten leading housing estates in the past two days were 16 cases, a decrease of about 15.8% weekly. However, they still have recorded double-digit transactions for 20 consecutive weeks. The Chief Executive of the Midland Real Estate Residential Department, Po Siuming, expresses that funds continued to flow into the asset market, due to the continued low-interest-rate environment and the hedging feature of housing investment. The enthusiasm of first-hand property sales reflects the rising desire of the public to enter the market. At the same time, it also consumes a lot of purchasing power and grabs a lot of customers from the second-hand market, resulting in slow second-hand property trading.
According to the statistics of Ricacorp, the transactions in ten leading housing estates in the past weekend were 12, an increase of 37% compared with 19 cases last weekend. The President of Ricacorp, Liao Wai-Keung, points out that property prices are gradually rising. Both buyers and sellers need more time to negotiate, slowing down the progress of transactions. The recent reduction in second-hand properties for sale directly affects the trading volume. Besides, society has recently begun to talk about the timing of the implementation of the National Security Law Related to the Hong Kong Area. It is not excluded that a small number of buyers will adopt a wait-and-see attitude. Still, it is believed that the second-hand property transaction volume is possible to rise to normal levels next week as the market conditions improve.
Hong Kong Property Services recorded transactions in ten leading housing estates on the weekend with 11 cases, an increase of nearly 60% weekly. The Chief Executive Officer of Hong Kong Property Services, Lee Chi-Shing, expresses that the Hong Kong property market, which is more resilient, is highly sought after as the easing of the epidemic and the global money flood, although the Sino-US wrestling continues.
House in Flora Plaza was sold with a price cut.
Although the market sentiment has improved, the recent transaction price has returned to rationality under the changing economic environment. Lam Ho-Yin from Centaline expresses that a middle-rise Room B, a three-bedroom unit in 526 sq ft located in Block 4 of Flora Plaza in Fanling, was asked for HKD6.7 million by the original owner. The owner said he would accept negotiation if price can reach HKD6.6 million, attracting three groups of buyers to compete. It was finally sold to one of these three groups buyers for HKD6.63 million, with the sq ft price at HKD12,605. The original owner bought it for HKD2.18 million in 1995, earning book profit over two times.
Besides, a two-bedroom middle floor, Room E in Block 2 of Island Crest, Sai Ying Pun, with about 459 sq ft, was put on sale for HKD13 million by the original owner in this month. Until recently, it was sold for HKD10.8 million after an accumulated price cut of HKD2.2 million or about 17%, with the sq ft price at HKD23,529. The original owner purchased the unit mentioned above for HKD8.322 million in February 2010, and the appreciation in about ten years is about 30%.
Transactions in the ten largest housing estates on the weekend.
Agency Transactions Rise and Fall
Centaline Property 15 cases ↓16.7%
Midland 16 cases ↓ 15.8%
Ricacorp 12 cases ↓37%
Hong Kong Property Services 11 cases ↑57%
