Property deals pick up across the boardBusiness | Kevin Xu 13 Jan 2020
Hong Kong's property market is seeing green shoots of a recovery as secondary market transactions hit a two-month high and home buyers piled into the first new project in Tin Shui Wai in a decade for the second weekend on the trot.
Secondary transactions at ten major housing estates more than tripled to 10 over the past weekend, a 10-week high, according to Centaline Property Agency.
However, four estates still recorded no transactions, including Kingswood Villas in Tin Shui Wai, Caribbean Coast in Tung Chung, Whampoa Garden in Hung Hom and Kornhill in Quarry Bay.
Meanwhile, home owners continuing cutting prices to woo buyers in the secondary market.
A three-bedroom flat at Festival City in Tai Wai changed hands for HK$10 million, or HK$14,771 per sq ft, after HK$2.2 million was slashed from the original asking price while a 363-sq-ft flat at Metro City Phase II in Tseung Kwan O sold for HK$6.28 million, or HK$17,300 per sq ft, after HK$70,000 was cut from the asking price.
In the primary market, home buyers continued to snap up flats at Wetland Seasons Park in Tin Shui Wai amid a recovery in sentiment.
Sun Hung Kai Properties (0016) sold 316 out of 331 flats put on sale at Wetland Seasons Park as of 10pm on Saturday.
SHKP has collected HK$4.5 billion after selling 690 out of 710 units at Wetland Seasons Park. The developer expects to the launch phase two of the project soon after the Chinese New Year.
Wetland Seasons Park, the first new project in the district in 10 years, will offer a total of 1,727 units with 710 planned for the first phase.
Besides, Hanison Construction (0896) uploaded the sales brochure of West Park in Sham Shui Po on Sunday (Jan 12), which offers 63 flats measuring between 333 sq ft and 493 sq ft.
In the commercial property market, the average selling price of grade A office buildings in Hong Kong dropped by 6.1 percent year-on-year, due to months of social unrest and Sino-US trade tensions, according to Midland IC&I (0459). Admiralty saw the biggest year-on-year drop of 18 percent in grade A office building selling prices. The number of transactions in the commercial property market fell 53.9 percent year-on-year to 962 in 2019, the lowest since 1996.
Eric Ong, director at Midland Commercial, estimates that prices of Grade A offices will fall by 5 percent this year, and Grade A office rents will drop by 5-8 percent, while the transaction number will surge 20 percent this year.