Some analysts pointed out that the increase in asking prices across the board in recent months has reduced buyers' desire to enter the market, and with some buyers moving to new developments, the secondary market needs some time to regain purchasing power.
Centaline Property recorded only three transactions in the past two days, a 72.7% drop week-on-week and a 41-week low, with only Taikoo Shing and Kingswood Villas.
Centaline Property Asia Pacific vice-chairman and president of the residential division, Mr Chan Wing-kit, said yesterday that new properties had stolen the spotlight from the market, coupled with the fact that the affordable second-hand properties had long been digested by the market, but buyers generally did not chase the price to enter the market, making the second-hand transactions stagnant, he believed that the focus of the second quarter property market still fell on the primary market.
Midland recorded 8 transactions over the weekend, down 33.3% week-on-week. Midland's Chief Executive Officer of Residential (Hong Kong and Macau), Mr. Bo Siu Ming, said that with the end of the holiday season and the eve of a major new property launch, many potential buyers returned to the secondary market, making the weekend viewing volume has returned to normal.
However, as the second-hand owners see the price of properties rebounding, they are also resuming strong asking prices, thus making the transaction stagnant, coupled with the opportunity for developers to sell at a discount to the second-hand price, posing some pressure on the secondary market transactions.
According to Mr Liu Wai-keung, president of Ricacorp Properties, due to the long holidays, there is a significant decrease in the number of visits to the secondary market, and the pace of transactions in the top 10 estates has also slowed down, with the bank recording five secondary transactions over the weekend, down by more than 40% week-on-week.
He believes that the increase in asking prices across the board in recent months has reduced buyers' desire to enter the market, and with some buyers already moving to the new property market, it will take some time for the secondary market to regain its purchasing power.
Among the four major estate agents, only Hong Kong Land recorded an increase in secondary transactions over the weekend, with eight transactions, up 60 per cent week-on-week.
Hong Kong Land's Chief Executive Officer, Mr. Ma Tai Yeung, expects that the buying power will continue to emerge, and that the price of the properties with room for bargaining will be absorbed quickly, so it is believed that before the new properties are launched, the second-hand transactions will stabilise, and the property prices will continue to rise, showing a stable price and volume situation.
Despite the drop in transaction volume, there is still no shortage of prospective buyers vying for individual quality properties. Centaline Property's Metro City Branch Manager, Mr Lee Chun-lung, said that the sale of a 684-square-foot, three-bedroom suite in Unit C of the upper floors of Block 3 of Tseung Kwan O Centre was facilitated, with the initial asking price of $12.3 million.
The original owner entered the market in 2014 for $7.68 million and has made a profit of $4.82 million or 63% in the 9 years he has held the property.
