Owners are aggressive in asking prices and second-hand transactions are under pressure

28Hse Editor  2021-07-12  #Transaction

The epidemic in Hong Kong has been under control, and the property market prices have risen in the past few months. However, as many property owners are more aggressive in asking prices, buyers need time to digest and consider, dragging down the second-hand transaction volume. Centaline Properties’ top ten housing estates recorded 18 transactions over the past weekend, a drop of 18.2% from the 22 transactions recorded last weekend, but they have maintained double-digit levels for 21 consecutive weekends. The prices of many housing estates continued to reach their peaks. Among them, a 2-bedroom household in Huanyu Bay, Tsuen Wan, sold for 8.95 million yuan, a record high for similar units. reporter Yan Lunle

Chen Yongjie, vice chairman and president of the residential department of Centaline Properties Asia Pacific, said that as the epidemic situation in Hong Kong continues to stabilize, both first-hand and second-hand transactions are booming. As of Saturday, about 770 transactions were recorded in the first-hand market. As the market is improving, many homeowners are more aggressive in asking prices, causing the second-hand market to show price increases and volume declines. Buyers need time to digest and consider. However, the overall market outlook is positive and the property market is expected to develop steadily in July.

Among the districts, Kingswood Villas in Tin Shui Wai and South Horizons, Ap Lei Chau performed the best, with 4 transactions recorded in the past weekend. Among them, Kingswood Villas recorded about 21 transactions on the first 11 days of this month, compared with the same period in June. About 8 cases were recorded, which increased by 13 cases or 1.6 times. Centaline Property Wen Jiahui said that the current average price per square foot of housing estates is about $11,173.

Huanyu Bay 2 bedrooms sold at 8.95 million yuan

New high transactions continued to be recorded in various districts. Cheng Shangjie of Centaline Property stated that Universal Bay’s latest record of 5 high-rise E-room transactions, with a usable area of 502 square feet, two-room separation, with open sea views, sold for 8.95 million yuan after bargaining, equivalent to The practical price per square foot is RMB 17,829, a new high for similar units. Cheng Shangjie pointed out that the buyer was a passenger in the district. The original owner bought the unit in 2014 for 5.574 million yuan, held the goods for about 7 years, and made a book profit of 3.376 million yuan, and the unit appreciated by about 61% during the period.

According to statistics from Midland Realty's branch, a total of about 20 transactions were recorded in the top 10 blue chip housing estates over the past weekend, a decrease of about 13% from the previous weekend, but it remained at double digits for 21 weeks. Bu Shaoming, Chief Executive Officer of Midland Realty's Residential Department, said that in recent months, property prices will soon break through historical highs, mainly due to global volume and low interest rates, coupled with the gradual recovery of local economic activities and other favorable factors.

He also pointed out that buyers have a strong desire to enter the market, but after several months of digestion of second-hand large-scale housing estates, there is a relatively short supply of stocks; coupled with the rush of first-hand new houses, the second round of sales at Kai Tak Harbour was launched over the past weekend. More than 100 units were sold in a single day, and second-hand trading was under pressure. It is understood that a total of 188 transactions were recorded in the first-hand market over the past weekend, of which 118 transactions were recorded in Victoria Harbour 1, accounting for 63% of the weekend’s transaction volume. There were more new transactions, including Tuen Mun Emperor Lantianlu. There were 20 transactions and 11 transactions were recorded in the Southwest Kowloon Victoria Harbour.

The overall property market is expected to remain prosperous

However, some agency banks also reported an increase in second-hand trading. According to the network data of Ricacorp Real Estate branch, 20 second-hand transactions were recorded in the top ten index housing estates over the past weekend, which is higherThe 13 cases during the weekend increased by 54%, a record high in the past five weeks. Liao Weiqiang, President of Ricacorp Real Estate, said that buyers in the market have begun to adapt to the increased prices of owners and have entered the market one after another. In addition, there were no large new projects on the market in the past weekend, which caused some customers to flow into second-hand. Liao Weiqiang pointed out that the recent reduction of the epidemic has helped to strengthen buyers’ confidence in entering the market. Coupled with the economic chain compound effect driven by the introduction of consumer vouchers, the public’s desire to go out has increased, and he hopes that the economy will further improve. It is expected that second-hand transactions can be maintained in the short term. At a decent level, if a large new property is launched in the market later, it may temporarily grab the focus of prospective buyers, and the overall property market performance will continue to be vigorous.

Hongkong Land's top ten housing estates recorded a total of 16 transactions during the weekend, an increase of about 14% from the 14 transactions last weekend. Hong Kong Real Estate's Chief Operating Officer and Kowloon District Director Ma Taiyang said that due to recent stock market fluctuations, many funds tend to buy bricks to maintain their value. Coupled with the stabilization of the epidemic in Hong Kong, the market is looking forward to customs clearance in Hong Kong, and buyers have accelerated their pace of entering the market. In addition, the continued low interest rate environment is good for buyers to save interest. It is expected that in the short term, many new large-scale new properties will be launched for sale. The property market will fuel the fire. It is expected that the second-hand volume will increase simultaneously.

Disclaimer: All wordings and pictures which indicated 28HSE editor are the copyright of 28HSE LIMITED. Acknowledgement is required if other parts of this publication are used. The content is for reference only, does not constitute investment advice and it does not mean that 28HSE agreed the points. The area which show in the article is salable area if there is no special circumstances. The pictures is for reference also.

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