As the pandemic gradually dwindles, the property market's momentum has returned. Both the transaction volume and bank valuations for 20 major estates rebounded last month from March.
As many as 15 of the 20 estates saw the number of secondhand home deals rise, with increases ranging from 4 percent to 3.5 times.
The number of transactions at Tsuen King Garden in Tsuen Wan jumped to nine last month from just two the previous month thanks to the relatively low average price per square foot.
Even though some owners narrowed the room for bargaining, buyers were still interested in the estate, a Centaline Property agent said.
Some of them had begun to look at the estate over the past few months but decided to postpone their purchases due to the spike in Covid cases, he added.
In Ngau Tau Kok, Amoy Gardens recorded 20 transactions in April, more than double the nine transactions recorded the previous month.
The surge was mainly due to fifth-wave fears easing, which has led to an increase in public confidence regarding the property market. Some prospective buyers took advantage of this improving situation and got on the property ladder before owners started raising prices, said a Ricacorp Properties agent.
Although a number of new projects were launched in Kowloon at the end of the month, the asking price for a two-bedroom unit in Amoy Gardens, which started from HK$6 million, was still considered very attractive, the agent said, adding that the number of inquiries and home viewings were not significantly affected by the primary market.
On the other hand, there were also estates that could not keep pace with the volume of transactions seen in March, such as Metro City in Tseung Kwan O, where the number of deals slid from 31 to 25.
An agent from Midland Realty explained that homes with good value for money were sold off in March when the fifth wave showed signs of easing, leading to a hike in sales during the month.
As the sector heats up again, banks have also heightened their valuations for homes.
Of the 20 estates, seven - mostly in Kowloon and Tseung Kwan O - recorded growth in bank valuations, varying from 0.11 percent to 1.94 percent.
However, the biggest increase in monthly valuation among the 20 estates was seen at Metro Harbour View in Tai Kok Tsui.
A 353-sq-ft flat there was valued at HK$6.32 million, up from HK$6.2 million in March.
Metro City ranked second with the valuation of a 539-sq-ft unit advancing by 1.03 percent to HK$7.82 million.
It was followed by Nan Fung Plaza - another Tseung Kwan O estate - which saw a 1-percent valuation hike for a 697-sq-ft home to HK$9.09 million.
Seven estates saw their monthly bank valuations remain the same last month while six recorded drops of between 0.04 and 3.01 percent compared with March.
Vincent Cheung Kiu-cho, managing director of Vincorn Consulting and Appraisal, said overall property prices have stopped falling and are on track for recovery as Covid settles.
The sector has recovered some of the lost ground from the 5-percent drop in prices since the fifth wave, added Cheung, and the overall housing valuation will grow next month in a gradual trek back toward an upward trend.
