Secondary home deals rebound amid price cuts

Despite record rainfall last Friday, transactions in the secondary property market rebounded over the weekend thanks to more price reductions and fewer launches in the primary market.

Centaline Property reported 13 deals at 10 major housing estates, up from three during the previous typhoon-hit weekend, to a 19-week high.

The agency said adverse weather over the previous weekend had affected real estate transactions but this weekend saw a release in buying power, as more owners lowered prices, enticing home buyers.

There are signs that prices have begun to stabilize and secondary transactions are expected to recover gradually, it said.

Meanwhile, Midland Realty saw weekend deals at 10 major housing estates rise to 14 from three the previous week to a 19-week high.

A three-bedroom flat at Taikoo Shing in Quarry Bay with an area of 689 square feet sold for under HK$10 million, after its price was reduced from HK$11.5 million in June to HK$9.9 million.

And in Tin Shui Wai, a three-bedroom flat at Kingswood Villas sold for HK$5.1 million or HK$8,100 per sq ft, marking a loss of HK$300,000 compared to its 2018 purchase price.

The Hongkong and Shanghai Banking Corporation was reportedly set to raise the H-plan mortgage rate cap by 0.5 percentage points to 4.125 percent on September 18. Other lenders are anticipated to follow suit, aiming to alleviate high borrowing costs.

Sammy Po Siu-ming, Midland's residential department chief executive officer, expressed concerns that this might discourage potential buyers, worsening the overall market sentiment.

In the primary market, Henderson Land (0012) released 28 flats at Baker Circle Greenwich in Hung Hom yesterday, with the cheapest priced at HK$3.65 million, while Longfor (0960) will launch sales of four special flats at Upper RiverBank in Kai Tak today, three days later than originally planned, due to the heaviest rain on record last week.

CK Asset (1113) has added 10 more car-parking spaces to The Beaumont II in Tseung Kwan O with prices starting from HK$1.28 million, and five lots to Harbour Glory in North Point with the cheapest priced at HK$2.36 million.

This move followed a price reduction of up to 35 percent, which contributed to the developer's successful sales of 32 parking lots at both projects, generating a revenue of HK$52 million.