Among the four major agents in Hong Kong, the second-hand transactions of Midland and Ricacorp were flat week-on-week over the weekend (May 27-28). According to analysis, the secondary market will continue to hover at a low level in the short term, with a number of brand new properties ready for launch, and it is believed that the primary market will dominate in the short term.
The Chief Executive Officer (Hong Kong and Macau) of Midland Real Estate said yesterday that the US debt ceiling issue has recently become the focus of the global investment market, in a cautious investment atmosphere, dragging Hong Kong stocks to a new low in the year, while affecting the property market entry atmosphere, at the same time a number of brand new properties are also ready to launch, so many buyers focus on the new market, absorbing some of the second-hand customers, inevitably make the second-hand indicator court weekend trading difficult to see a breakthrough.
He also believes that in the short term, the secondary market will continue to hover at a low level, and the situation of first-hand domination of the market remains unchanged. Midland recorded 5 second-hand transactions over the weekend, the same as the previous week, and 6 over the 3-day Buddha's Birthday long weekend.
Ricacorp recorded 3 second-hand transactions on the past Saturday, also flat on a weekly basis, and 6 transactions during the 3-day Buddha's Birthday holiday.
Ricacorp's Chief Executive Officer, Mr Liu Wei-keung, pointed out yesterday that second-hand transactions remained low over the weekend, mainly because potential buyers were still worried about the June interest rate trend and the lack of focus in the primary market, which is expected to continue for some time.
Centaline recorded 5 secondary transactions on Saturday, up 66.7% week-on-week, and 5 transactions during the 3-day Buddha's Birthday holiday. Centaline Property Asia Pacific Vice Chairman and Chief Executive Officer of the Residential Division, Vincent Chan, said that since Hong Kong banks followed the US interest rate hike earlier this month, buyers have taken a wait-and-see attitude towards the future market and are clearly less confident in entering the market.
Moreover, while new primary properties have been offered at restrained prices, they have succeeded in stealing the market's purchasing power, while second-hand affordable properties have already been absorbed.
Hong Kong Land's Chief Executive Officer, Mr. Ma Taiyang, said that the recent debt ceiling issue in the United States has added to the gloomy outlook of the property market. It is believed that the secondary market will stabilize only when the purchasing power of the primary market returns to the secondary market and the economic uncertainties are gradually removed. Hong Kong property market recorded 6 transactions over the weekend, a 2-fold increase to a 5-week high, while 7 transactions were recorded over the 3-day long holiday.
On the other hand, the second-hand market continued to record eclipsed transactions, reflecting the fact that the property market has not yet calmed down. Liao Zhenxiong, Sales Director of Century 21 Chifeng, said that a new transaction was recorded for a low-rise flat G in Block 1, Yat Long, Sai Kung, with a saleable area of 852 square feet, which was sold at a reduced price of $600,000 to $10.4 million, at a price of $12,207 per square foot, 5% below the market price.
The original owner purchased the above site in March 2020 for $11.65 million and has been holding the property for over 3 years at a loss of $1.25 million or 11%.
Centaline Property's Divisional Sales Manager, Mr. Timothy Chan, said that Flat H on the lower floor of Block 2, with a saleable area of 760 square feet, was sold for $9.4 million at $12,368 per square foot in Ma On Shan. The original owner, who bought the upper site in 2020 for $9.91 million, left the market with a loss of $510,000 in the 3-year holding period, resulting in a 5.1% depreciation in the value of the unit.
According to Mr Yau Ka-pong, Regional Director of Cheung Yick Properties, a 1-bedroom flat on the middle floor of Block A of Siu Hei Court, Tuen Mun, with a saleable area of 363 sq ft, was sold at a free market price of $3.88 million. The original owner bought the unit in 2018 for $3.98 million and has held it for 5 years at a loss of $100,000 or 2.5%.
