2024-04-25 28Hse Editor
New properties dominate the market Second-hand transactions slump over weekend
Developers continue to put up new properties for sale, as buyers anticipate the launch of large projects in the absence of affordable second-hand flats. Hong Kong’s three major real estate agencies recorded a drop of 40 to 72.7 per cent in the second-hand transactions of the top 10 blue-chip housing estates on Saturday. Some analysts say that owners’ increase in asking prices in recent months have reduced buyers' desire to enter the market. With some buyers opting for new properties instead, it will take time for the secondary market to gather buying power again. Yin Kao-ling
Centaline Property recorded only three transactions from Taikoo Shing and Kingswood Villas in the past two days, a 72.7 per cent drop week-on-week and a 41-week low. Louis Chan Wing-kit, Asia Pacific vice-chairman and residential division president at Centaline, said yesterday that new properties stole market attention. Chan added that the focus of the second quarter was on the primary market as affordable second-hand properties had long been absorbed by the market, but sales remained stagnant as buyers remained neutral.
New properties follow market price Second-hand properties face price pressure
Midland recorded eight second-hand transactions over the weekend, down 33.3 per cent week-on-week. Sammy Po Siu-ming, chief executive of Midland Realty’s Hong Kong and Macau residential division, said that with the end of the holiday season and the eve of major new property launches, many potential buyers returned to the secondary market, restoring normality to the number of weekend flat viewings. But as second-hand owners saw a rebound in property prices, their asking price rose once more, resulting in a transaction slowdown. With developers likely to sell at discounted second-hand prices, secondary market transactions faced additional pressure.
Willy Liu Wai-keung, chief executive at Ricacorp Properties, said transactions in the top 10 estates had also slowed down as a result of Easter break, which had significantly reduced the number of second-hand flat viewings. The bank recorded five secondary transactions over the weekend, down by more than 40 per cent week-on-week. Liu added that the overall increase in asking prices by secondary owners has reduced buyers' appetite to enter the market. With some buyers choosing to enter the first-hand property market instead, the second-hand market would require time to regain buying power.
Among the four major estate agents, only Hong Kong Property Services (Agency) recorded an increase in secondary transactions over the weekend, with eight transactions, up 60 per cent week-on-week. Dave Ma, chief executive at Hong Kong Property Services, expects that purchasing power will continue to rise, and that cheap second-hand homes are expected to be snapped up by bargain hunters. It is believed that before the massive launch of new projects, second-hand transactions will stabilize, and property prices will continue to rise strongly, reflecting a stable price increase.
Owners of large units in Park Central, Tseung Kwan O counteroffer asking prices
Despite the drop in transaction volume, many prospective buyers are still vying for high-quality properties. Juno Li, Tseung Kwan O Metro City branch manager at Centaline Property, said that one owner initially listed their flat – a 684-square-foot, three-bedroom, en-suite flat unit in the upper floors of Block Three in Park Central – at HK$12.3 million. However, leveraging the presence of multiple prospective buyers in negotiation, the owner eventually sold their flat for HK$12.5 million at HK$18,275 per square foot.
The original owner bought the property in 2014 for HK$7.68 million and made a profit of HK$4.82 million or 63 per cent in nine years of ownership.
Weekend Secondary Transactions in Top 10 Blue-Chip Estates (15-16 April)
Property agency Number of transactions Week-on-week change
Centaline 3 -72.7%
Ricacorp 5 -44.4%
Midland 8 -33.3%
Hong Kong Property 8 +60%
Produced by: Yin Kao-ling
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