Recent statistics indicate a slump in trading activities in the Hong Kong property market, particularly with a gradual decline in resale property transactions. Last Saturday, only 6 out of the top 10 estates recorded transactions, with 5 estates witnessing zero transactions.
Similarly, data from Centaline Property revealed only 4 transactions last week, a decrease of 2 transactions from the previous week, while the number of estates with no transactions remained at 6.
The sluggishness in the resale property market has compelled many selling homeowners to effect transactions through substantial price cuts. For instance, in City One Shatin, two two-bedroom units were sold for less than 4 million Hong Kong dollars, with one unit even depreciating by over 1 million Hong Kong dollars.
Amid the pandemic's impact, the villa project, Lung Cheung Shan Villa, has introduced significant discounts and successfully sold three properties for 30 million Hong Kong dollars, each receiving an average discount of over 15 million compared to the original prices in 2018.
In most of the closed deals, significant price reductions were necessary, with such situations of discounted transactions becoming increasingly common. A low-rise two-bedroom unit in Tseung Kwan O's New Park Towers was sold for 5.879 million Hong Kong dollars, resulting in a loss of 1.501 million Hong Kong dollars or 20.3% for the original owner.
After 8 months of listing and price reductions, a low-rise unit in Yoho Town, Ma On Shan, was finally sold for 9.68 million Hong Kong dollars, marking a decrease of 15.8%. In addition, a two-bedroom unit in Yuet King Court, Yuen Chui House, Sha Tin, was sold for 5.3 million Hong Kong dollars after a price reduction of 1.3 million Hong Kong dollars, representing a 19.7% decrease.
While the market anticipates positive measures from the government that could stimulate the property market, both buyers and sellers prefer to wait for the policy announcement before making decisions, contributing to a persistently cautious atmosphere.
Industry insiders anticipate that the government will introduce cooling measures in the forthcoming policy address, which could signal positively and potentially stimulate market recovery. As the government's new policies for the property market become clearer, the transaction volume of resale properties is expected to increase.
In the primary property market, sales have been relatively more active, especially with significant interest still garnered by large-scale luxury residential projects.
Recently, China Resources' T Plus in Fo Tan sold 3 units on a Saturday, with a transaction price of 6.794 million Hong Kong dollars and a unit price of 19,523 Hong Kong dollars per square foot. It is expected that with the introduction of a series of favorable policies such as residential projects and green initiatives by the government, along with Hong Kong's gradual emergence from the economic slump, the performance of the property market may improve in the future.
Currently, the Hong Kong property market is experiencing a sluggish phase, with a somewhat lackluster resale property market. However, the implementation of favorable policies such as easing measures by the government may have some positive effects. Additionally, with the economy gradually emerging from the slump, the future performance of the Hong Kong property market is expected to improve gradually.
