Price cuts boost secondary salesMoney Glitz | Kevin Xu 17 Oct 2019
Secondary transactions in 20 major housing estates increased 62.69 percent month-on-month to 218 in September, as vendors become more willing to cut prices amid uncertainty.
Some home owners are now taking a bearish view of the market and are willing to accept more wiggle room in price negotiations amid the wait-and-see sentiment in the secondary market, the ongoing Sino-US trade war and the recent social unrest, said Midland chief executive Sammy Po Siu-ming.
Po also said potential purchasing power remains strong, boosting transactions in major housing estates. He expects property prices to fall by a further 3 to 5 percent in the fourth quarter, with small and medium flats seeing bigger price drops.
More than half of the 20 major housing estates saw the average per-square-foot price of secondary deals in September fall by between 1 to 18 percent. Among them, six major housing estates recorded more secondary transactions and lower per-square-foot prices.
Kingswood Villas in Tin Shui Wai recorded 46 secondary transactions in September, up 188 percent month-on-month. The average per-square-foot price of the transactions fell 1.1 percent month-on-month to HK$10,861.
Liberte in Cheung Sha Wan saw secondary transactions increase 1.5 times month-on-month to five in September. The average per-square-foot price of the transactions fell 18 percent month-on-month to HK$16,085.
There were 40 secondary sales at City One Shatin in September, up 111 percent from August. The average per-square-foot price of the transactions fell 4.8 percent month-on-month to HK$17,573 in September.
However, the average per-square-foot price of secondary deals at five major housing estates in September still increased by between 0.1 and 9.2 percent month-on-month.
The number of secondary sales at Taikoo Shing in Quarry Bay doubled to 15 in September, and the average per square foot price inched up 0.1 percent month-on-month to HK$19,990 in September.
Kornhill in Quarry Bay saw secondary transactions fall to four in September from five in August. The average per-square-foot price of the transactions increased 6.8 percent month-on-month to HK$15,861 in September.
Metro City in Tseung Kwan O recorded five secondary transactions in September, down by 38 percent from August. The average per- square-foot price increased 9.2 percent month-on-month to HK$16,432 in September.
The average per-square-foot price of three secondary deals recorded at Telford Gardens in Kowloon Bay increased 6.5 percent month-on-month to HK$14,321. There were also three secondary transactions in August for an average of HK$13,451 per sq ft.
Over the weekend, Centaline Property Agency reported six secondary transactions in 10 major housing estates, up 20 percent week-on-week, after China and the United States reached a partial trade deal.
Ricacorp chief executive Willy Liu Wai-keung said the progress made in the trade talks could help market sentiment. He also expects a rally in secondary sales after the current social unrest ends.