Home buyers stay on the sidelines

The coronavirus outbreak continued to dampen sentiment as homebuyers gave a lukewarm response to the flats on offer at Emerald Bay Phase 2 in Tuen Mun, and Sun Hung Kai Properties (0016) recorded 11 deposit forfeitures at St Martin in Pak Shek Kok in a single day on March 6.

This came as the Hong Kong Monetary Authority reduced its benchmark interest rate by 50 points on March 4 in lockstep with the US Federal Reserve's emergency rate cut, while local banks left their prime rates on hold.

The forfeited deposits totaled nearly HK$15 million over the 11 flats at St Martin, with a sales director at Centaline Property Agency giving up HK$3.35 million after pulling out of the purchase of a four-bedroom flat. The 11 flats were offered at between HK$6.72 million and HK$22.33 million, or between HK$17,067 per sq ft and HK$23,700 per sq ft.

In Tseung Kwan O, Wheelock and Company (0020) received around 300 subscriptions for 101 flats at its Ocean Marini project at Lohas Park as of yesterday afternoon. The developer will launch the project for sale as early as mid-March.

Meanwhile, China Evergrande (3333) sold only 49 out of 141 flats at Emerald Bay Phase 2 in Tuen Mun as of 3pm Saturday, though the developer had provided more discounts.

In late February, China Evergrande cut the average per-square-foot prices of the 250 flats in the first price list by 4 percent to HK$16,304, after discounts, from HK$16,942 previously.

In the secondary market, Centaline Property Agency reported 15 secondary transactions at ten major housing estates over the past weekend, down by 30 percent week-on-week.

Blue-chip estates Kornhill in Quarry Bay, Metro City in Tseung Kwan O and Caribbean Coast in Tung Chung saw no secondary transactions.

In other secondary transaction activities, a 1,002-sq-ft flat at Kingswood Villas in Tin Shui Wai changed hands for HK$9.99 million, or HK$9,978 per sq ft, after about HK$2 million was slashed from the original asking price.

And a 545-sq-ft flat at Tai Koo Shing in Quarry Bay changed hands for HK$9.4 million, or HK$17,248 per sq ft, after HK$1.1 million was rubbed off from the initial asking price.