2024-05-03 28Hse Editor
(Zhou Xiaojing) The impact of Hong Kong’s interest rate hike last week, coupled with unstable weather during the weekend, has led to a freeze in second-hand trading. According to the city’s four major property agencies, Hong Kong’s ten biggest blue-chip housing estates recorded only two to four transactions over the weekend, with transaction volume shrinking on a weekly basis.
According to Louis Chan Wing-kit, vice chairman and chief executive (Residential) of Centaline’s Asia Pacific department, since the US announced an interest rate hike and Hong Kong’s major banks followed suit by raising their prime rates, buyers have held back from entering the market. Meanwhile, developers promoting new developments drew buyers by lowering prices, which led to further pressure on the second-hand market. Only two transactions were recorded over the weekend, a sharp drop of 71.4% from last week’s seven transactions.
Sammy Po Siu-ming, chief executive (Hong Kong and Macau) of Midland’s residential department, forecasted that second-hand prices and transaction volume would remain low and rise later. Midland recorded four transactions in the past two days, a weekly drop of about 43%, at single-digit levels for 13 consecutive weekends.
Developers reduce first-hand flat prices to compete for buyers Landlords switch from selling to leasing
A wave of Mainland renters has also led some landlords to switch from selling to renting out their units. Willy Liu Wai-keung, chief executive at Ricacorp Properties, said that homeowners who have put their homes on the market for a long period feel that the demand for leasing has soared recently.
Manor HIll in Tseung Kwan O sells two consecutive apartments over the weekend
In other news, no new developments were launched this weekend, though Henderson Land’s Baker Circle Phase Three project opened showrooms to the public. Thomas Lam Tat-man, general manager of Henderson Land’s Sales (I) department, said visitors were few due to unstable weather. However, new development Manor Hill in Tseung Kwan O recorded two consecutive deals over the weekend, and The Cullinan II recorded a HK$44.8 million transaction of unit B on the ninth floor of Tower One, measuring 1,432 square feet in size.
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