A rebound in the pandemic has sparked a drop in property transactions. Banks are also cautious while valuations have fallen slightly.
The number of housing estates that are seeing higher bank valuations fell from nine to seven.
Valuation increases at the seven housing estates ranged from 0.3 to 1.53 percent, according to a report on bank valuations of the 20 major estates.
The industry expects the primary market to continue to be the focus in the short term, and bank valuations will remain within a narrow range.
For a low-level unit B in block one of Laguna City in Kwun Tong, with an area of 517 square feet, the bank's estimated value of HK$7.18 million last month has risen to HK$7.29 million - an increase of about 1.53 percent.
There were seven housing estates that saw no changes in valuations during the period, accounting for 35 percent of the total.
Valuations in six housing estates (30 percent) increased, ranging from 0.46 percent to 1.26 percent, while there were seven estates with no change in valuation (35 percent).
At the start of this month, Laguna City saw the sale of sought-after units, including a high-rise two-bedroom flat with sea views, said Hung Kam-hing, the district sales director of Centaline Property Agency.
The transaction price was about HK$8.5 million, compared with the general price of HK$7.5 million for two-bedroom units in the housing estate.
Hung said this price gap might lead to banks raising their valuations.
Of the six housing estates that recorded declines in bank valuations, two saw drops of more than 1 percent.
Amoy Gardens in Ngau Tau Kok fell 1.05 percent while Belvedere Garden in Tsuen Wan saw a steeper drop of 1.26 percent.
A rise in the seriousness of the pandemic in Hong Kong that has seen the number of confirmed cases rebound to more than 2,000 a day is affecting transactions in the property market, said Vincent Cheung Kiu-Cho, managing director of Vincorn Consulting and Appraisal.
Also weighing on the market has been aggressive rate rises by the US Federal Reserve, which has brought instability to the property market..
The improved market sentiment due to the hope of easier travel has affected the decisions of owners and prospective buyers in the secondary market and indirectly caused banks to adjust the valuation of housing estates with a conservative attitude, Cheung said.
