The weather has improved, coupled with the absence of new properties being launched, leading to a resurgence of purchasing power in the second-hand property market. Transactions in the top ten housing estates over the weekend have all shown increases. Centaline recorded 10 transactions, up by 3 compared to the previous week; Midland Realty saw 11 transactions, a rise of 4 from the week before; Ricacorp reported 12 transactions, marking a rise of 7; and HKR International recorded 8 transactions, up by 1.
Hong Kong Property CEO Martin Ma Tai-yang mentioned that the recent Dragon Boat Festival holiday period saw some citizens traveling abroad. However, with no new properties entering the market, this attracted some purchasing power back to the second-hand market in search for bargains. Additionally, with the imminent interest rate decision by the US Federal Reserve, the market anticipates that the peak of interest rates in the US has been reached, and there will be a reduction in the second half of the year. Consequently, many buyers took the opportunity to enter the market, leading to a slight increase in second-hand transactions on a weekly basis.
Chen Wing-kit, Managing Director of Residential at Centaline Property, stated that the recent improved weather and absence of new property launches have resulted in purchasing power flowing back into the second-hand market. Furthermore, many second-hand property owners have started facing reality and are willing to negotiate on prices, leading to transactions reaching double digits this week. However, impacted by interest rate cuts in Canada and Europe, many buyers are hopeful that the US will accelerate its rate reduction cycle. This sentiment has created a cautious atmosphere in the market, keeping the number of second-hand transactions low.
Midland Realty’s Residential CEO Bob Siu Ming mentioned that the recent Dragon Boat Festival long weekend, with no new properties launched, prompted some buyers to search for bargains in the second-hand market, leading to an increase in weekend transactions at the benchmark housing estates. However, with new properties being deployed in various districts of Hong Kong Island, Kowloon, and the New Territories in the short term, the property market remains focused on new properties. Together with the stock clearance, it is believed that second-hand transactions will continue to fluctuate in the short term, with transactions mainly centered around price reductions and bargain deals.
Leo Property CEO Thomas Liu Wai-keung noted that with no major focus on new properties during the three-day holiday period, buyers were able to capitalize on the second-hand market. Seeing owners willing to reduce prices, buyers chose to negotiate and bargain to achieve their ideal purchase prices, driving up transactions in second-hand housing estates slightly from a lower level.
Region-wise analysis shows that in the Hong Kong Island area, Calvin Lo, Chief Regional Sales Manager of the Southwest District of Centaline Property, stated that during the three-day holiday at Park Island, a transaction for Unit C on the middle floor of Block 23A, with a practical area of 581 square feet, was concluded at the latest selling price of 7.92 million Hong Kong dollars, with an average practical square foot price of 13,632 Hong Kong dollars. The original owner purchased the unit for 5.08 million Hong Kong dollars in 2011, holding it for 13 years. This sale resulted in a profit of 2.84 million Hong Kong dollars, a 56% appreciation of the unit.
In Kowloon, Yu Mei-bao, Senior Joint Director of Huangpu Second Street of Ricacorp Property, mentioned that the transactions recorded at Whampoa Garden over the weekend included Unit B on the middle and lower floors of Block 7, Phase 2, with a practical area of approximately 962 square feet, recently sold for about 14.8 million Hong Kong dollars, at an average price of about 15,385 Hong Kong dollars per square foot. Additionally, Unit D on the high floor of Block 7, Phase 9, with a practical area of around 771 square feet, changed hands for about 9.35 million Hong Kong dollars, with an average price of around 12,127 Hong Kong dollars per square foot.
In the New Territories area, Ng Kam-kei, Assistant District Sales Manager of Shatin’s First City branch of Centaline Property, stated that a transaction was concluded at First City in Shatin over the past weekend, with a total of 2 transactions during the three-day holiday. Centaline just facilitated the sale of Unit G on the high floor of Block 48, with a practical area of 304 square feet, one-bedroom layout, originally priced at 4.6 million Hong Kong dollars, ultimately sold for 4.4 million Hong Kong dollars, at an average practical square foot price of 14,474 Hong Kong dollars. It is understood that the original owner purchased the unit for 210,000 Hong Kong dollars in 1986, holding it for about 38 years, resulting in a profit of 4.19 million Hong Kong dollars, nearly 20 times appreciation of the unit.