New properties steal the spotlight
May 22, 2023
New properties steal the spotlight Hong Kong
By   Wen Wei Po 
  • City News
  • Transaction Quotes
  • Property Market
  • Estate Transactions
Abstract: The primary and secondary property markets are in a state of flux, with the top 10 housing estates recording 3 to 5 transactions on Saturday, down on a weekly basis, according to the four major agents.

HK Land's Chief Executive Officer, Mr Ma Tai Yeung, said a total of 2 transactions were recorded on the two days, a new low since early February 2020, with only 2 estates in Mei Foo Sun Chuen and City One Shatin recording transactions.


According to Mr Liu Wei-keung, CEO of Ricacorp, the new developments were on the offensive and developers were offering prices that were more favourable than those of second-hand units, successfully taking away the focus of the market and freezing transactions in second-hand estates.


According to the bank's data, the top 10 target estates recorded 3 second-hand transactions in the past two days, down by 2 or 40% week-on-week and at single-digit level for 7 consecutive weeks, as second-hand transactions remained muted.

 New properties steal the spotlight

According to Centaline's Chief Divisional Sales Manager for Hong Kong Island South West, the interest rate hike has had a definite impact on buyers, with some of them believing that property prices will fall in the near future and are afraid to enter the market, or switching from buying to renting, with buyers and sellers maintaining a tug-of-war.


The bank recorded three transactions in the past two days, down 50% week-on-week, with zero transactions in seven estates.


According to Centaline, Laguna City recorded one transaction in the past two days, involving a high-rise G flat in Block 11, with a usable area of 517 sq ft and two partitions, asking price of $7.2 million.


The original owner bought the flat in August 2006 for $2,038,000 and has held it for 17 years, making a profit of $5,022,000, representing a 2.5 times appreciation in value. Laguna City has recorded 8 transactions so far this month and the market is very quiet.


Midland's Chief Executive Officer (Hong Kong and Macau), Mr. Bo Siu Ming, expects that second-hand transactions may continue to hover at a low level in the near future, given the recent hot sales of new properties. Second-hand transactions are expected to stabilise only after a slight slowdown in new sales.


The bank's top 10 blue-chip estates recorded a total of about five transactions, down nearly 17 per cent from about six on the previous Saturday.

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