Over the past weekend, the top ten housing estates in Hong Kong remained quiet in terms of transactions, with agents recording a few units changing hands. According to the latest data, Zhongyuan reported 4 transactions, an increase of 1 compared to the previous week; Midland Realty secured 6 transactions, up by 1; Ricacorp Properties recorded 7 transactions, representing a surge of 4; and Hong Kong Property Services reported 4 transactions, an increase of 1.
In light of the recent market conditions, Mr. Chen Wing Kit, the CEO of the residential department at Zhongyuan Properties, noted that after a brief period of stability, the property market is now entering a period of respite. Several positive factors are brewing, such as the Hong Kong stock market surpassing 19,000 points and various market stimulus measures introduced by the mainland. Currently, many potential buyers are scouting for properties and waiting for the right timing to enter the market. It is anticipated that after a rate cut in the second half of the year, the property market will pick up, painting an optimistic outlook.
Mr. Peter Po, the CEO of the residential department at Midland Realty, expressed that the market has been stimulated by numerous positive news, with Hong Kong stocks hitting new highs for the year and continuous measures from the mainland to boost the property market. The inflation data in the US aligning with expectations has reignited hopes for a rate cut, injecting momentum into the local property market. Over the weekend, the second phase of sales for “The YOHO HUB II” in Yuen Long saw strong demand, nearly selling out, reflecting the sustained purchasing power in the market. Despite the current focus on new developments, there is still continuous demand in the secondary market, with strong reception for quality resale units as potential buyers search for hidden gems.
Regarding the outlook for the property market, Mr. Leo Wai-keung, the CEO of Ricacorp Properties, mentioned that the expectation for a rate cut by the US Federal Reserve in the short term did not materialize. Combined with developers still holding high inventory levels, the strategy of “volume before price” is being adopted when releasing new properties, leading to subdued activities in the secondary market.
Mr. Martin Ma, the CEO of Hong Kong Property Services, highlighted that over the weekend, the second round of sales at the residential project “The YOHO Hub II” in Yuen Long was close to being fully sold out. Including the first round of sales last week, the project has sold over 400 units in total, demonstrating a strong performance and indicating a significant absorption of purchasing power in the primary market. With many potential buyers redirected to the primary market, transaction volumes in the secondary market are inevitably hovering at lower levels.
Breaking it down by regions, in the Hong Kong Island area, Zhao Hongyun, the Senior Regional Sales Director at Taikoo Shing of Midland Realty, reported that there was one transaction over the weekend. Midland Realty facilitated the sale of a 3-bedroom unit with a saleable area of 897 square feet at “Purple Beech Court.” The unit was sold for HK$15 million, at an average price of HK$16,722 per square foot. The original owner purchased the unit for HK$4.82 million in 1999, held onto it for over 24 years, and made a profit of over HK$10.18 million, marking a gain of more than 2.1 times the initial investment.
In the Kowloon area, Wanda Ren, the Co-chief Director at Ricacorp Properties Kornhill Branch, revealed that over the past weekend, 2 transactions were recorded at Lai Hong Court in Lam Tin. One transaction involved a mid-level unit in Block 20 with a saleable area of around 517 square feet, which was sold for HK$5.83 million, equating to an average price of approximately HK$11,277 per square foot. The other transaction was for a low-level unit in Block 7 with a similar saleable area, sold for HK$5.15 million, translating to an average price of about HK$9,961 per square foot.
In the New Territories region, Chi-wai Cheung, the Branch Manager at Tung Chung’s Wing Wan Garden office of Zhongyuan Properties, reported a transaction over the weekend. A high-level unit in Block 10 with a saleable area of 725 square feet was sold for HK$7.2 million, at an average price of HK$9,931 per square foot. The original owner purchased the unit for HK$3.98 million in 2010, held onto it for nearly 14 years, and made a profit of HK$3.22 million from the resale, representing an appreciation of about 81%.
This recent activity in the property market reflects the ongoing dynamics and positive sentiment among buyers and sellers, setting the stage for potential growth and opportunities as the market continues to evolve.