Prices rise as bullish market fuels deals

Property | Staff reporter 17 Jun 2021

The release of pent-up purchasing power as the local pandemic situation improves has pushed up home prices. Data from the Rating and Valuation Department showed that property prices had risen from January to April, with the cumulative increase coming in at 2.87 percent - only 1.57 percent below the May 2019 peak.

Many large housing estates had outperformed the market, with the average price per square foot at the 20 index housing estates increasing between 0.6 percent and 7.1 percent from January. This rise also reflects that buyers have been more aggressive in the bullish market.

Of these estates, Caribbean Coast in Tung Chung saw the most substantial price rise. Its average price per sq ft was HK$12,312 last month, increasing 3.4 percent from April's HK$11,910 and 7.1 percent from January's HK$11,493.

As for transaction volume, the estate has maintained a pace of more than 30 deals per month.

Up to 37 deals were recorded last month, coming in second so far this year after January, which took the top spot with 45 deals.

The estate's strong performance was closely followed by Yoho Town in Yuen Long, which saw an average price of HK$16,487 per sq ft last month, a rise of 1.9 percent from March and 5.6 percent from January's HK$15,610 per sq ft.

The estate recorded 31 deals last month, 10.7 percent more than the 28 seen in January.

At Taikoo Shing in Quarry Bay, the average price was HK$20,010 per sq ft, 1.7 percent higher than its March figure and 4.2 percent more than the HK$19,195 per sq ft recorded in January.

There were 51 deals made at the estate last month, 1 percent more than the 48 sales in January.

The managing director of Vincorn Consulting and Appraisal, Vincent Cheung Kiu-cho, pointed out that there are not many estates neighboring MTR stations costing less than HK$13,000 per sq ft, with Caribbean Coast and Kingswood Villas in Tin Shui Wai being a few examples.

Cheung believed the recent price rise seen at Caribbean Coast reflected its catching up with the level at other estates that neighbor MTR stations.

He also noted that the recent increase in the supply of small and medium-sized units in east Kowloon has led to a slowdown in the price growth of Kowloon Bay's Telford Gardens and other housing estates of similar age with relatively small-sized units.

Ricacorp chief executive Willy Liu Wai-keung explained the stagnation at Telford Gardens was also because it previously accumulated a certain amount of growth due to the influence of new projects in Kai Tak, coupled with the estate's smaller bargaining range due to its age.

As for the boom at Caribbean Coast, he noted that the estate was previously affected by several negative factors - such as aviation workers surrendering their tenancies or putting their properties on sale - which pulled down prices.

But with a prospective recovery of air travel, prices at the Tung Chung estate have begun to pick up again, Liu said.

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