According to statistics from market and property agents, as of early November, the total stock of bank-owned properties across Hong Kong has reached 281, marking a 24.3% increase from the same period last year when there were 226 properties. This sets a new record since March 2009.

The increase in the total stock of bank-owned properties occurred in the second half of the year but did not show a sharp upward trend. Lawrence Koo, Director-General of Asia-Pacific Property Auctions, attributes the main reason for the increase in the total stock of bank-owned properties to the difficulty in selling many of these properties, leading to a continuous accumulation.

He points out that although some may mistakenly believe bank-owned properties to be more affordable, in reality, transactions involving bank-owned properties must align with property valuations, and the transaction period is longer. Due to recent urgency among second-hand property owners to sell at reduced prices, many transaction prices have fallen below the bank's valuation, making second-hand properties relatively easier to transact compared to bank-owned properties.

Even distinctive properties are not exempt. For example, a unit in MARINI, the Sunrise City in Tseung Kwan O, was initially listed at a price 582,000 Hong Kong dollars lower than its purchase price by the previous owner who borrowed from different financial firms between March and September last year before the bank took possession.

Tony Cheuk-Chu Cheung, Managing Director of Concord Consulting and Valuation, believes that the current property market environment presents opportunities for buyers, especially those capable of paying a high down payment. Such buyers can choose high-quality second-hand properties, while bank-owned properties may take longer to find suitable buyers.

In such a market environment, both buying and selling properties require a careful assessment of market changes based on one's financial situation and investment goals.

Cheung also notes that even as the number of bank-owned properties continues to increase, it is unlikely to have a significant impact on the overall market. He points out that the quantity of bank-owned properties is relatively small compared to the overall property market supply. Additionally, the prices of bank-owned properties typically undergo bank evaluations, preventing them from being unreasonably priced.

He believes that for property owners and investors, the most crucial aspect is to observe market changes and adjust strategies accordingly. If the property market continues to be weak, property owners may need to consider whether to lower their selling prices, while investors must assess whether they have sufficient funds to cope with potential price declines.

In the current market environment, whether buying or selling properties, careful evaluation of market changes and decisions based on one's financial situation and investment goals are essential. The increase in bank-owned properties undoubtedly adds new considerations to the market.