Secondary sales hit two-month low

Business | Kevin Xu 16 Dec 2019

The property market remained downbeat over the weekend, with secondary transactions hitting a new low over the past two months.

Ricacorp Properties reported only four secondary transactions at ten major housing estates over the weekend, down by 20 percent from a week before and hitting a ten-week low.

Six major estates reported no transactions.

Laguna City in Kwun Tong, Metro City in Tseung Kwan O, Kingswood Villas in Tin Shui Wai and Caribbean Coast in Tung Chung recorded one deal respectively. Among these, a three-bedroom flat at Metro City changed hands for about HK$7.88 million, or HK$14,981 per sq ft while a 749-sq-ft unit at Caribbean Coast was sold for HK$7.85 million, or HK$10,481 per sq ft.

The secondary transactions further shrank because Christmas and the New Year are approaching, social unrest has not completely eased, and recent economic data reflect gloomy market prospects, said Ricacorp chief executive Willy Liu Wai-keung.

Liu said many home owners are refusing to cut asking prices, due to several favorable factors, including the phase-one trade deal announced by the United States and China, the Federal Reserve's decision to hold interest rates steady, and an upward trend in the stock market, so buyers are staying on the sidelines.

In other deals, a 284-sq-ft flat at City One Shatin fetched HK$5.03 million, or HK$17,704 per sq ft, after HK$472,000 was cut from the original asking price. The selling price was also 16 percent lower than that of a 284-sq-ft flat at the estate which changed hands in June last year, according to Midland Realty?.

Also, a 1,010-sq-ft unit at City Garden in North Point was sold for HK$17.88 million, after HK$2.12 million was slashed from the original asking price.

In the primary market, Sun Hung Kai Properties (0016) will launch five luxury houses at Crown of St. Barths in Ma On Shan for sale by tender on Thursday while China Evergrande (3333) will launch 180 flats at Emerald Bay in Tuen Mun for sale the same day.

China Evergande has so far collected around HK$1.8 billion after selling about 370 flats at the project.



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