Economic slowdown to dampen property prices

Business | Kevin Xu 9 Jan 2020

Property prices in Hong Kong will fall between five and 10 percent this year, amid an economic slowdown, according to Centaline Property Agency co-founder Shih Wing-ching.

Though calm has largely returned to the streets, which may improve domestic consumption, employment and salary growth will be impacted by a slowdown in the economy, he said.

Shih expects the property market to boom after the Chinese New Year, adding that the hot sales of some new projects are due to smaller units and attractive prices, but other units are not selling quickly.

In the primary market, CITIC Pacific has collected HK$95.44 million after selling five flats at The Entrance in Ma On Shan by tender so far this month. The developer has launched 84 flats at The Entrance for sale by tender since Monday. The project has obtained an occupation permit.

Also, Great Eagle (0041) sold a three-bedroom flat at Ontolo in Tai Po for HK$24.1 million, or HK$19,551 per sq ft, by tender.

In the secondary market, Midland Realty reported eight secondary transactions at Taikoo Shing so far this month.

Meanwhile, home owners continued to woo buyers with price cuts as more loss-making deals were recorded in luxury transactions.

A 716-sq-ft flat at Tai Koo Shing in Quarry Bay changed hands for HK$13.38 million, or HK$18,687 per sq ft, after HK$1.62 million was slashed from the original asking price. Also in Quarry Bay, a three-bedroom flat at Kornhill fetched HK$9.38 million, or HK$15,791 per sq ft, after HK$420,000 was cut from the asking price.

In the luxury market, Decade Or Chun-ping, chairman of Taste of Asia which owns Cafe 100%, bought a 2,520-sq-ft house at Hong Lok Yuen in Tai Po for HK$38.5 million, or HK$15,300 per sq ft. The buying price was HK$4.84 million lower than the HK$43.34 million paid by the seller five years ago. The vendor would incur a loss of at least HK$7.06 million after paying stamp duties and commission fees.

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