This past weekend witnessed a significant uptick in Hong Kong's secondary home sales, reaching a 15-week peak with 12 transactions recorded in 10 major housing estates. This resurgence in activity is attributed to sellers offering more attractive price reductions.
The spike in sales brought the total count to 16 for the extended four-day holiday period. Despite this surge, Centaline Property noted a year-on-year drop of around 50 percent with the same 16 transactions observed across 10 key housing estates during the festive season.
The increase was particularly notable over the weekend, with a 33 percent rise in transactions compared to the previous weekends, culminating in the 15-week record.
Louis Chan Wing-kit, Asia-Pacific vice-chairman of Centaline's residential division, highlighted the market's reaction to the anticipated three interest rate cuts in the US in 2024, along with additional measures from the Hong Kong government. These factors are seen as instrumental in bolstering buyer confidence and creating a more conducive environment for the secondary property market.
Midland Realty echoed similar transaction figures, reporting about 16 sales in eight out of the 10 major estates during the same four-day holiday window. Again, the weekend was particularly strong with 12 properties changing hands, reinforcing the 15-week high.
Data from Ricacorp Properties revealed that sellers in November made an average profit of 38 percent, marking the lowest margin in nearly 13 years. Out of the 1,077 flats sold in the secondary market that month, 813—or 75 percent—were sold at a profit, though this was the second-lowest percentage in over 14 years. Conversely, 256 units were sold at a loss, which represented approximately 23.8 percent of the total sales.
