Super-luxury sector demand drops

Business | Kevin Xu 16 Jul 2019

The super-luxury residential property segment in Hong Kong saw a drop in demand, with the townhouse market recording a 1.5 percent price fall in the second quarter, due to mainland and local high net worth individuals sitting on the sidelines, according to Savills Hong Kong.

The real estate services provider said the overall Hong Kong residential market recorded 21,685 transactions in the first four months, with no increase over the same period last year.

Both luxury and mass home markets were supported by the primary market, as the latter's market share of total volume increased from 22.4 percent in the first quarter to 37.4 percent in the second quarter.

"With local GDP growing at a much more moderate pace of 0.1 percent year-on-year in the first quarter of 2019, together with uncertainties over the Sino-US trade negotiations and the direction of the local stock market, residential demand may pull back over the next three to six months, especially at the top end where asset allocation among cities is most mobile," said Savills Realty managing director Keith Chang.

A 623-square-foot foreclosed unit at The Sorrento in West Kowloon was offered at HK$26 million, or HK$41,733 per sq ft - 25 percent higher than another flat of the same size in the development that sold last month.

In the secondary market, a 503-sq-ft flat at Villa Esplanada in Tsing Yi changed hands for HK$9.86 million, or HK$19,602 per sq ft, making it the most expensive two-bedroom flat in the project, according to Centaline Property Agency.

Among other transactions, a 498-sq-ft unit at the Beaumount in Tseung Kwan O fetched HK$7.78 million, or HK$15,622 per sq ft, a new high among two-bedrooms in the project, Centaline said.

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