Following the government's policy adjustments announced last Wednesday, the top three real estate agencies recorded fewer than 10 transactions in the top ten estates over the weekend (28th to 29th). Among them, Centaline Property Agency reported only 6 transactions, representing a 40% decline from the previous week, marking the steepest drop.
Chen Yongjie, Vice Chairman of Asia Pacific and Chief Executive of the Residential Department at Centaline Property, suggested that while the market sentiment improved following the policy announcement, the overall transaction volume did not see a sharp rise. This was attributed to transactions diversifying into more affordable properties beyond the top ten estates and some purchasing power shifting towards the primary market, leading to a decline in transactions within the top ten estates.
Data from Midland Realty indicated that in the first weekend following the policy announcement, there were only 7 transactions in the top ten premium estates, marking a 30% weekly decline. Vincent Po, Executive Director (Hong Kong and Macau) of Midland Realty's Residential Department, noted that while there was positive viewing activity in the secondary market, the rapid surge in the primary market diverted some potential buyers, putting pressure on the secondary market.
Nevertheless, network data from Ricacorp Properties' branch showed a slight increase of 1 transaction, amounting to 9 secondary market transactions across the top ten reference estates over the weekend, reflecting a 12.5% weekly growth. Ricky Liao, CEO of Ricacorp Properties, suggested that although there was a slight improvement in market sentiment after the policy announcement, some property owners held firm on prices due to the perception that the policy adjustments would stabilize prices. Meanwhile, limited awareness of the market's impact among buyers contributed to a bullish trend, restricting the extent of recovery in the secondary market.
Specifically, Zhuang Jianlan, Regional Operations Manager at Centaline Property, reported that after the release of the policy adjustments, the first transaction in Taikoo Shing's Silverstrand Tower F, with a practical area of 897 square feet and a 3-bedroom layout, was sold for HK$14.5 million at a rate of HK$16,165 per square foot. The previous owner held the property for 12 years, realizing a net profit of HK$4.32 million, representing an appreciation of 42.4%.
On the other hand, Huang Jinhan, Assistant Joint Managing Director at Midland Realty, disclosed that Unit C in Block 34 of City One Shatin, with a practical area of 707 square feet and a 3-bedroom layout, was recently sold for HK$8.98 million at a rate of HK$12,702 per square foot. The previous owner purchased the unit for HK$11.38 million in 2019, incurring a net loss of HK$2.4 million over the past four years, accounting for approximately 21.1%.
