Secondary market sales dive to nine-month low

Secondary home sales at the ten major housing estates slumped to a nine-month low over the weekend amid the booming primary market, according to data from Centaline Property Agency.

Only three deals were recorded at two of the blue-chip estates - down 72.7 percent from last week's 11 deals.

Two transactions were at Taikoo Shing, Quarry Bay, which broke the zero-deal record of the previous weekend. The latest transaction was a two-bedroom flat sold at HK$11.95 million, with a book gain of HK$4.52 million as it jumped 61 percent from the original price of HK$7.43 million 12 years ago. The owner had cut the price by HK$550,000 before successfully selling the 592-square-foot flat.

Kingswood Villas in Tin Shui Wai recorded the other deal - a high-level two-bedroom 442-sq-ft flat - at HK$5 million. The apartment has appreciated in value over 1.2 times, translating into a gain of HK$2.8 million for the owner who bought the home for HK$2.2 million in 2012.

Louis Chan Wing-kit, Asia-Pacific vice-chairman of Centaline's residential division, explained that the new private homes have stolen the spotlight in the property market and not many affordable secondary listings are left for potential buyers. He believed the secondary market will continue to be overshadowed by the buoyant primary market in this quarter.

Meanwhile, in the primary market, The Grand Victoria II at the waterfront of Cheung Sha Wan recorded at least four transactions, cashing in over HK$59 million during the weekend.

The four flats sold in the new residence, co-developed by Sino Land (0083), Wheelock Properties, K Wah International (0173), Shimao Property (0813) and SEA Holdings (0251), were sold at between HK$12.9 million to HK$18.5 million. The sizes of the units range from 490 sq ft to 790 sq ft and are priced around HK$23,400 to HK$28,700 per sq ft.

In Lam Tin, Wheelock Properties's Koko Mare sold 60 units on Saturday in the first day of its second round sale of 98 units. The developer said it expects to put more batches on the market - primarily units with a sea view - with increased prices of about 10 percent within this month.