Supported by a low interest rate environment, the secondary property market recently saw a rebound in the number of transactions.
Large-scale blue-chip housing estates took the lead. Due to the fast-moving market for low-priced housing, purchasing power has shifted to second-tier housing estates.
This has led to a significant increase in transactions for small and medium-priced properties below HK$10 million, with record high prices reached frequently. Most buyers bought the properties for self-use rather than investment.
Sammy Po Siu-ming, chief executive of Midland Realty's residential division, said the secondary property market has been blooming while record high transactions have been recorded frequently.
He also pointed out that the space for bargaining in the market has significantly narrowed, and homeowners have been unwilling to negotiate their asking prices.
Po added that although the unemployment rate in Hong Kong remained high, the middle class was less affected and the property market was expected to continue improving.
A two-bedroom penthouse unit in block 2 of Sun Yuen Long Centre, with an area of 466 square feet and a rooftop, was sold for HK$7.08 million, or HK$15,193 per sq ft - the highest price of the kind in the estate. Centaline Property said the property was bought for self-use.
A 539 sq ft two-bedroom unit at Greenview Villa, Tsing Yi, was sold for HK$7.3 million, or HK$13,544 per sq ft, which was also the highest price for the same type of unit in the Home Ownership Scheme housing estate. This buyer also purchased the unit for self-use.
In addition, the price per sq ft of second-tier housing estates in Sha Tin has returned to the HK$20,000 level.
A 288 sq ft unit at Tung Ning Building in Shatin Centre, with decorations provided, was sold for HK$5.8 million, or a per sq ft price of HK$20,423.
The unit was redesigned from a one-bedroom unit to a studio flat. Midland Realty said the flat was also bought for self-use.
A unit in block C Garden Rivera in the same district, with an area of 242 sq ft and a 277 sq ft roof, was sold for HK$4.9 million, or HK$20,248 a sq ft. Its original two-bedroom layout was turned into a one-room partition by the former owner.
A 284 sq ft two-bedroom unit in block 50, site five, City One Shatin, was sold for HK$5.18 million, or a price of HK$18,239 per sq ft.
The buyer purchased the unit for self-use at a price that was market level.
A two-bedroom unit in block five, New Town Plaza, Sha Tin, with an area of 583 sq ft, was sold for HK$10 million, or HK$17,153 per sq ft.
Centaline Property said the transaction was a record high for that type of unit in the housing estate.
Taikoo Shing in Quarry Bay recorded two transactions in a single day.
A 503 sq ft unit at Ko On Mansion was sold for HK$10.8 million, or HK$21,471 per sq ft, while a 922 sq ft unit in Wisteria Mansion was sold for HK$6.08 million, or a per sq ft price of HK$17,440.
In Tseung Kwan O, a 474 sq ft two-bedroom unit in tower 5B of Wings At Sea, Lohas Park, was sold for HK$8.928 million, or HK$18,835 per sq ft, which is in line with market levels.
Centaline Property said the original owner purchased the unit for about HK$8.92 million in December 2017.
After holding the property for more than three years, the former owner suffered a loss of HK$450,000 after deducting all expenses.