On the Mother’s Day weekend, transactions at the top ten housing estates were sluggish, while sales of new developments were thriving. Only 3 transactions were recorded at the top ten housing estates of Midland Realty, a decrease of 5 compared to the previous week; Centaline also reported only 5 transactions, down by 3; Ricacorp and Hong Kong Property both had 3 transactions, a decrease of 4 and a slight increase of 1 respectively.
According to Chen Wing-kit, the CEO of the residential department of Midland Realty, a new development in Yuen Long successfully sold out 210 units on the first day of sales. The atmosphere for primary transactions was lively, but with a large portion of buyers focusing on new projects, secondary transactions were immediately affected. Additionally, with the festive atmosphere of Mother’s Day weekend, property viewings decreased further, slowing down secondary transactions. It is believed that new launches will continue to dominate the market in the short term, while secondary transactions remain steady.
Bruce Siu-ming, CEO of the residential department of Centaline Property, stated that the sales of new projects continued to be hot. Over the weekend, YOHO HUB II in Yuen Long sold out 210 units on the same day and continued to release units to meet market demand. This reflects the sustained release of purchasing power in the market. Many buyers, including end-users, investors, and mainlanders, are actively participating in the market for new projects.
Lau Wai-keung, CEO of Ricacorp Properties, mentioned that the recent fluctuation of property price indices was minimal. There are cases of large-scale selling by commercial property investors. With the uncertainty of the timing of interest rate cuts in the United States, potential buyers are cautious about entering the market, adopting a wait-and-see attitude. It is believed that in the short term, the market will continue to be dominated by new launches, while secondary transactions progress slowly.
Martin Ma, CEO of Hong Kong Property, stated that since the withdrawal of the cooling measures, several large new projects have been successively launched, along with active deliveries of remaining new properties. This has led the market’s focus to be on new projects, which has been well received due to attractive pricing. On the other hand, secondary market performance has been relatively lackluster, with transaction volumes unable to match the initial fervor seen after the cooling measures were lifted.
In terms of regional analysis, in the Hong Kong Island area, Chiu Hung-wan, Senior Regional Director of Taikoo Shing at Midland Realty, mentioned that with the launch of large-scale new projects in the New Territories over the weekend, the low-price sales strategy continued to grab market attention and a large number of buyers. Along with the Mother’s Day weekend festivities, there was a significant slowdown in secondary transactions.
In the Kowloon area, Kam Wing, Senior Regional Director of Metro City Plaza in Tseung Kwan O at Midland Realty, reported only 1 transaction this weekend. The unit, a 2-bedroom layout with a practical area of 363 square feet, located on the G floor of Block 2 of Phase 2 of New Town Plaza, was sold for $5.4 million on the market, equivalent to a practical square foot price of $14,876. Data has shown that the original owner purchased the unit for $4.4 million in July 2014, making a profit of $1 million from the sale, marking a 23% increase in value over 10 years.
In the New Territories area, Ng Yiu-cy, Deputy Regional Director of Tin Shui Wai at Midland Realty, mentioned that there were no transactions recorded at Garden Vista over the weekend, reflecting a quiet market. This was due to the concentration of purchasing power on new projects in Yuen Long during this weekend, putting pressure on the secondary market. Fortunately, there has been an increase in bargaining space at Garden Vista recently, with approximately 13 transactions recorded this month, significantly faster than the 4 transactions in the same period last month, with the average practical square foot price dropping to $8,692, attracting buyers to re-enter the market in search of opportunities.