Hong Kong's Secondary Home Sales Dip as New Projects Lure Buyers

Hong Kong’s secondary home market has experienced a notable decrease in sales, dropping to single digits for the first time since property restrictions were lifted six weeks ago. Prospective buyers have been drawn to new developments, leaving secondary market transactions at a mere nine deals across 10 major housing estates. This is the lowest since the removal of all stamp duties on February 28, as reported by Centaline Property Agency, marking an 18.2 percent decline from the previous weekend.

Particularly quiet were Kornhill in Quarry Bay, South Horizons in Ap Lei Chau, and Whampoa Garden in Whampoa, all recording no transactions. According to Louis Chan Wing-kit, Centaline’s Asia Pacific vice-chairman of the residential division, the allure of new projects, competitively priced at market rates, is diverting attention from secondary sales.

Midland Realty’s data shows a contrast in the broader secondary market, with a 22 percent increase in transactions around MTR stations last month, totaling 483 deals. In terms of price movements, March saw prices climb in seven of the 10 estates tracked by Midland. South Horizons reported the most significant jump, with a 7.1 percent rise to an average of HK$13,725 per square foot, while Whampoa Garden saw a 6.2 percent decrease to HK$12,150 per square foot.

Turning to the primary market, Wheelock Properties is gearing up to launch Park Seasons - Phase 12B of Lohas Park, offering 685 units, with an emphasis on one- and two-bedroom apartments ranging from 314 to 537 square feet. Ricky Wong Kwong-yiu, Executive Director, announced that prices will be disclosed this week, with all units tagged below HK$10 million, potentially increasing by up to 10 percent from the previous phase.

Seasons Place, Phase 12A of Lohas Park, has already generated approximately HK$3.47 billion from 548 flats sold last month. Meanwhile, CK Asset (1113) is introducing an additional 88 flats at Blue Coast near Wong Chuk Hang MTR station, with prices raised by 3 percent to an average of HK$23,233 per square foot after discounts. The new flats vary in size and room count, and following a successful initial sale where 96 percent of 422 units sold out, generating nearly HK$7.5 billion, the developer plans to continue price hikes for future releases.

Justin Chiu Kwok-hung, CK Asset's Executive Director, noted that sales have exceeded expectations. The primary market has seen a surge in activity with 4,895 transactions in the first quarter, over double the previous quarter and reaching the highest level since the second quarter of 2019, as per the Sales of First-hand Residential Properties e-platform.