Secondary market crippled by unrest

Business | Kevin Xu 29 Jul 2019

Only one secondary market transaction was recorded at 10 major housing estates over the weekend - hitting a 38-week low, according to Centaline Property Agency.

It said a two-bedroom unit at Metro City Phase II in Tseung Kwan O changed hands for HK$6.6 million or HK$18,182 per square foot.

Centaline blamed the gloomy sentiment on the ongoing social unrest and Sino-US trade war, along with the launch of new projects in the primary market.

A new development in Pak Shek Kok lured purchasing power away from the secondary market, and home viewings by purchasers will be affected on Hong Kong Island and in New Territories West, where protests have taken place, leading to traffic congestion, said Centaline Asia-Pacific residential chief executive Louis Chan Wing-kit.

Ricacorp Properties chief executive Willy Liu Wai-keung said many home owners are taking a wait-and-see stance, and only a handful of them are willing to cut asking prices, as the US Federal Reserve will likely lower interest rates, while China will restart trade negotiations with the United States.

Second-hand transactions in Yuen Long fell 15 percent month-on-month to 64 in July, amid recent social unrest, probably a new low this year, Centaline said.

A 443-sq-ft unit at Yoho Midtown in Yuen Long sold on the weekend for HK$7.48 million, or HK$16,885 per sq ft, prior to Saturday's protest, after HK$520,000 was slashed from the original asking price.

Meanwhile, Midland Realty reported a 477-sq-ft flat at Allway Gardens in Tsuen Wan sold for HK$5.38 million, or HK$11,278 per sq ft.

However, the primary market was still hot, with Great Eagle (0041) selling out 238 apartments at Ontolo in Pak Shek Kok on Saturday. Ontolo offers 723 units ranging in size from 357 sq ft to 3,098 sq ft.

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