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The First-Hand Properties Are Rashly Launched while the Trading in the Second-Hand Property Market Is Slow Down.

Image Caption
Centaline only recorded 10 transactions in ten leading housing estates on weekend, and it was sharply down 61.5% weekly.

Hong Kong Wen Wei Po (By Ngan Lun-lok)

The property market continued to improve under the effect of mortgage insurance relaxation and interest rate cuts, while the sales as well as additionally launches of several first-hand projects in recent days attract part of purchasing power in the second-hand market. According to Centaline statistics, the trading volume of ten leading housing estates in the past two days (November 2, 3) was 10 cases, sharply down 61.5% than that in the previous weekend, and it is the first time of decrease after the relaxation of property price upper limit under mortgage insurance plan was announced, also three major housing estates in the New Territories were recorded of zero transaction.

The APAC Vice President and Residential Department President of Centaline Property, Chen Wing-kit expresses, two large first-hand housing projects in New Territories had totally launched more than 900 units in the past one week, freezing the purchasing power in the second-hand market. In addition, the recent increase in the trading of a number of estates has decreased a large number of cheap houses, leading the lowest prices for each major housing estates to increase, so buyers turned to the second-line housing estates and caused the trading speed to slow down.

The transactions for ten leading housing estates recorded by Midland was about 11 cases, also down by 57.7% from the previous weekend, but the number still had maintained at the double-digit level for three consecutive weeks. The Chief Executive of the Midland Real Estate Residential Department, Po Siuming expresses, driven by the relaxation of the mortgage percentage for first housing in the first-hand property market, the property market has significantly rebounded, and local banks followed the US interest rate cut last week, stimulating the market's purchasing power to continue to emerge, so the sales of many first-hand housing estates are hot.

Owners are strong on prices, which is a block in trading.

However, the hot sales in the first-hand property market have attracted the main customers in the market, while the sharply increased available houses in the second-hand property market in the early time had been quickly sold, so some owners are strong on prices, making many customers change to the first-hand property market. However, the overall house visiting activities in indexing estates are still active, showing that the publics' desire to enter the market is still high, so the company is still optimistic about the market since customers will return back to the second-hand property market if owners lower their asking prices.

In the past weekend, the transactions of ten leading housing estates on weekend recorded by Ricacorp were 10 cases, sharply down by15 cases or 60% lower than last weekend. The President Liao Wai-keung points out that the market focus shifted to the first-hand property market due to developers’ actively launching, and some purchasing power was seized and consumed, resulting in a decrease of the second-hand customers. Besides, the overall second-hand property prices have rebounded driven by the sharp increase of second-hand property trading after the announcement of the policy address, and some owners increased prices due to the optimism on the future market, with the increasing range as high as to directly affects the buyer's decision to enter the market. At the same time, it has driven some buyers who are not eager to live immediately to flow to the first-hand property market. They choose the construction period payment method to purchase first-hand properties and then apply for the relaxed mortgage insurance plan.

170 first-hand property transactions were recorded on the weekend.

The transactions for ten leading housing estates on weekend recorded by Hong Kong Property Services were 7 cases, a decrease of 5 cases from the previous weekend and a 42% drop in weekly and fell below double digits level. The Chief Executive Officer of Hong Kong Property, Lee Chi-shing says, large-scale first-hand projects will gradually enter the market and freeze part of purchasing power, but the first-hand and second-hand property markets will still boom in the short term driven by favorable factors.

As for the first-hand property market, a total of 170 transactions were recorded in the past weekend, and most were made in The Regent developed by China Overseas Land & Investment in Tai Po. The Regent launched 382 units on Saturday, putting on sale 259 units among by price list and the remaining 123 units by a form of bidding. The market source points out that 102 units were finally sold.
Translated by 28Hse.com . All right reserved.