The Central China City Leading Index, a gauge of second-hand property prices, was last at 166.81 points, a 20-week high, up 1.35% on a weekly basis. Prices rose in four districts, led by New Territories East. Centaline Analysis said the index reflected the market situation in the week of the government's stamp duty reduction announced on February 22. The rising property prices continued, and the major local banks' reduction of the second hand mortgage cap rate will be reflected in the CCL in early April.
Wong Leong-sing, senior co-director of research at Centaline Property, said CCL was last trading at a 20-week high of 166.81, up 1.35 per cent week on week, when the government announced the stamp duty cut on February 22. Buyers actively entered the market, driving up CCL by 4.26% for 4 consecutive weeks, the first time since June 2021 (89 weeks), as prices continued to rise.
This week's rise in all eight CCL indices was only the second in 12 weeks. CCL rose repeatedly from the low point (156.37 points), and rose ten times and fell twice in the past 12 weeks, with a cumulative rise of 6.68%. CCL is 170 points away from its short-term target around Easter, currently only 3.19 points or 1.91% off. The impact of the collapse of Silicon Valley Bank in the United States and the reduction of the second hand mortgage cap rate by the major local banks on Hong Kong property prices will only begin to be reflected in the CCL to be released in early April.
CCL Mass closed at a 20-week high of 166.94, up 1.12 percent on a weekly basis. CCL(small and medium units) reached a 20-week high of 165.47, up 1.09% on a weekly basis and 4.11% on a 4-week basis. CCL(large unit) reached an 18-week high of 173.47, up 2.56% on a weekly basis, the biggest gain since April 2021 (98 weeks), and a four-week rise of 4.97%.
This is the third time in 12 weeks that prices in all four districts have risen. The New Territories East property price Index reached a 20-week high of 179.65, up 1.74% on a weekly basis, the largest increase in five weeks. New Territories East rose 6.81% in seven consecutive weeks, the longest consecutive rise since July 2018. New Territories West was at 153.18, a 17-week high, up 1.26% on a weekly basis and 1.97% on a two-week basis. Hong Kong Island closed at 170.17, a 20-week high, up 1.59% on a weekly basis. The Kowloon Daily posted 160.86 points, the second highest in 21 weeks, up 0.36 percent on a weekly basis.
However, secondary bookings fell this weekend (March 18-19). Midland Realty Branch recorded 457 pre-sale bookings for 15 target housing estates, about 5.2 per cent lower than the previous week.
Midland Realty's chief executive officer (Hong Kong and Macau), Peter Buk, said that most of the new deals adopted a "volume first, price later" strategy, which stole the market focus. In addition, the sales of the properties that were put up for sale earlier are also very good. As a result, many customers have been seized from the second-hand market. In addition, due to the digestion of the second-hand market, the bargaining space of owners has been narrowed, which has affected the booking activities of the second-hand estate.