According to Yang Mingyi, Senior Associate Director of Centaline Property Research, the number of second-hand HOS Agreement for Sale and Purchase (ASP) registrations (including the HOS Free Market and Secondary Market) recorded in the first half of 2023 was 3,778, with a total value of $17.367 billion, representing a significant increase of 70.8% and 64.8% compared to 2,212 and $10.538 billion in the second half of 2022 respectively. The number of cases reached a 12-year high after 4,405 cases in the first half of 2011, while the value was the third highest in history since records began in the second half of 1995, just below the $19.650 billion in the second half of 2021 and the $17.607 billion in the first half of 2021.
Reflecting the improvement in the property market this year, the resumption of home ownership desire, coupled with the stimulus of white form buyers entering the market in the first quarter, drove the second-hand HOS market to rebound significantly in the first half of the year. However, second-hand HOS transactions slowed down in the second quarter, with 1,531 transactions and $7.185 billion recorded, representing a drop of 31.9% and 29.5% respectively compared with 2,247 transactions and $10.188 billion in the first quarter.
In terms of monetary value, all four monetary categories of second-hand HOS transactions in the first half of 2023 were on the upswing. Among them, transactions valued at $4 million or below saw the largest increase, with 1,147 transactions recorded, representing a sharp increase of 1.04 times on a half-yearly basis.
The number of transactions valued at $4 million to $5 million also rose by more than 70%, with 1,421 transactions recorded, representing a 77.4% increase over the six-month period. The number of transactions valued between $5 million and $6 million and those valued over $6 million increased by 42.7% and 41.7% over the six-month period, with 792 and 418 transactions recorded respectively.
In the first half of 2023, there were 21 cases of second-hand HOS flats valued at $8 million or above, four fewer than the 25 cases in the second half of 2022. The highest value was recorded at $9.2 million for Flat H on the upper floors of Block 2 of Kai Tak Garden in Wong Tai Sin in March, and $9 million for Flat 7 on the upper floors of Fu Wo Court (Block D) in Fu Keung Court in Wong Tai Sin in June, while Flat F on the upper floors of Block 8 of Kornhill Garden in Quarry Bay in June, and Flat H on the middle floors of Block 4 of Melody Gardens in Tuen Mun in April, also recorded $8.8 million.
In the first half of the year, Kai Lok Court in Cheung Sha Wan was the only housing estate to record more than 100 sales and purchases, with 102 transactions valued at $533 million. Richland Gardens in Kowloon Bay recorded 84 transactions, ranking second with a total value of $397 million. Yu Chui Court in Shatin recorded 81 transactions, ranking third with a total value of $464 million.
On a monthly basis, the number of sale and purchase agreements for second-hand HOS flats (including those in the HOS Secondary Market and HOS Free Market) registered in June 2023 was 443, with a total consideration of $2,079 million. Compared with the 555 and $2,577 million recorded in May, the numbers and values decreased by 20.2% and 19.3% respectively. The number and value of HOS flats recorded were both at six-month lows after December 2022, indicating a slowdown in HOS transactions in May.
