Market continues to focus on new properties, while some second-hand properties see deeper price cuts (different agents have different observations, as seen below), with transactions in the top ten housing estates slightly increasing over the past weekend. Centaline recorded 11 transactions, up by 3 compared to the previous week; Midland Realty also reported 11 transactions, a rise of 2 from the previous week; Ricacorp saw 9 transactions, up by 2 from last week; and Hong Kong Property recorded 9 transactions, one more than the previous week.
Vice President of Asia Pacific and Chief Executive of Residential Department at Centaline Property, Andrew Chan, stated that recently developers have been showing restraint in pricing, launching new properties at competitive prices which successfully triggered a buying spree. For example, the new property Lang Yin Peak near Ho Man Tin Station was sold out on the first day of sale, coupled with second-hand property owners willing to increase their price cuts, stimulating purchasing power. Currently, buyers are actively searching for bargains in both the primary and secondary markets, leading to a steady upward trend in the overall property market.
Executive Director of Residential Department at Midland Realty, Polly Poon, mentioned that with the approaching Golden Week following the full withdrawal of stamp duties, developers are gearing up by launching properties at competitive prices to attract buyers, attracting a significant number of second-hand buyers in the market. Despite some prime properties being quickly absorbed in the market, buyers’ eagerness remains strong, resulting in stable improvements in transactions.
Director of Ricacorp Properties, Raymond Liu, noted that continuous releases of new properties with discounts have stimulated market purchasing power, keeping the focus primarily on the primary market, while transactions in the secondary housing estates have remained relatively flat. First-hand properties in the central districts, particularly those with hot sales records, continue to attract buyers with discounts, dominating the market spotlight. Regarding second-hand properties, due to the influx of buyers since the stamp duty abolition, a significant amount of purchasing power and affordable properties have been consumed, awaiting a new round of bargain properties to make a more significant breakthrough.
CEO of Hong Kong Property, Martin Ma, stated that the recent uptrend in the stock market over the past week has positively impacted the overall investment atmosphere, benefitting the property market as well. Many developers have seized the market opportunity by launching new properties at competitive prices, capturing market attention. For instance, the recently launched property in Ho Man Tin was sold out on the first day, with remaining unsold units also achieving healthy sales, reflecting the strong purchasing power in the property market. On the secondary front, the market has become more active, with some second-hand property owners showing increased confidence by setting firm asking prices, leading to limited room for negotiation, resulting in challenging transactions over the weekend.
In terms of regional analysis, Director of Sales at Taikoo Shing’s Centaline Property, David Cheung, noted that the sluggish weather and continuous low-price strategies for new properties have slightly dampened the secondary market atmosphere. Taikoo Shing recorded 1 transaction over the weekend, involving a high-level unit in Cai Tin Court with a sale price of 12.5 million HKD, reflecting a decrease of 1.3 million HKD or 9.4% from the previous listing price of 13.8 million HKD in December last year. The average price per square foot in Taikoo Shing this month is around 17,434 HKD.
In Kowloon district, Manager at West Kowloon Mei Foo Third Branch of Centaline Property, Ken Fung, mentioned that Mei Foo Sun Chuen saw a decent performance over the weekend with 3 transactions, one more compared to the previous weekend, with an average price per square foot of around 10,600 HKD, down by approximately 7.5% weekly. Due to the consistent low-price strategies of urban railway developments, there has been a shift of second-hand buyers towards the primary market. To remain competitive, property owners have intensified their price cuts, with recent transactions in Mei Foo Sun Chuen mainly involving discounted or level-priced units. Recently transacted unit included a mid-level unit in Hang Bai Road, with a price per square foot of 10,255 HKD. The property was purchased in 2010 for 3.2 million HKD, and the selling price of 5.22 million HKD reflects a profit of 2.02 million HKD, indicating a 63% appreciation over 14 years. Mei Foo Sun Chuen has recorded 29 transactions this month compared to 58 transactions last month, a 50% decrease.
In the New Territories, Director of Premium Districts at Tai Wai’s Ricacorp Properties, Wallace Wong, reported that only one transaction was recorded in Shek Mun Estate over the weekend involving a high-level unit. The property was sold for approximately 4.66 million HKD, translating to an average price per square foot of around 14,251 HKD.