Secondary market hit by new flat sales

Themis Qi

Only four deals were recorded in the 10 major housing estates in the secondary market as buyers were mostly lured into the primary market, which saw at least 130 transactions over the weekend.

The 10 major housing estates saw transactions decrease by 20 percent weekly to four on Saturday and Sunday, the 11th consecutive week of single-digit deals, data from Centaline Property Agency showed.

Louis Chan Wing-kit, Asia-Pacific vice chairman of the residential division at Centaline, said that the weak performance in the secondary market was partly due to the new projects that started sales over the past two days at prices that matched market levels.

Chan expects the secondary market to remain flat in the future as there is no positive or negative news for the time being.

Midland Realty saw five transactions in the 10 housing estates it tracked over the same weekend, down by 28.6 percent. The reading makes it 11 consecutive weeks that deal numbers have come in single digits.

Sammy Po Siu-ming, chief executive of the residential division at Midland, said the easing in mortgage rules by the Hong Kong Monetary Authority didn't stimulate the secondary market.

The main action was in the primary market.

High Park I in Hung Shui Kiu, developed by Asia Standard International (0129), was said to have sold 64 of the 188 units that it had put on its price lists for trading on Saturday.

The apartments in this round of sale cost between HK$4.41 million and HK$7.14 million after discounts, or HK$12,688 to HK$15,773 per square foot.

La Montagne in Wong Chuk Hang also saw 47 flats purchased on Saturday, accounting for 44 percent of 108 units in the first round of sales. The prices after discounts of this batch ranged from HK$9.67 million to HK$30.16 million, or HK$23,988 to HK$35,001 per sq ft.

Henderson Land Development (0012) yesterday sold 16 out of 28 units at The Holborn in Quarry Bay, cashing in HK$120 million in one day.

Wheelock Properties said Koko Mare in Lam Tin saw two transactions that brought in HK$16.2 million in total, while Henderson's Baker Circle Euston in Hung Hom recorded one deal for HK$5.84 million.