Hong Kong secondary home sales slump as new launches lure buyers
Hong Kong's secondary home market saw sluggish sales over the weekend, with two major agencies reporting single-digit transactions across ten major estates. Agents attributed the decline to competition from new launches, which recorded over 340 sales.
Hong Kong's secondary housing market saw a sharp drop in transactions over the past weekend, as new property launches diverted buyers away from existing homes, according to industry data released on 26 October.
Centaline Property reported just five transactions across its ten major estates over the two days, a 44.4 per cent decline from the previous weekend and the lowest in three weeks. Five of the ten estates recorded no sales at all.
“The secondary market's purchasing power has been diluted due to competition from new projects,” said Centaline Property's Asia-Pacific vice-chairman and residential division president, Chris Chan.
Chan noted that three new projects launched over the weekend, with two selling out on the first day. The primary market saw more than 340 transactions over the two days, absorbing significant market liquidity and buyer interest, he added.
Midland Realty's branch statistics showed seven transactions across the ten major estates, down 22.2 per cent week-on-week. It marked the eighth consecutive weekend that sales remained in single digits.
“New launches are taking away buyers from the secondary market, with purchasing power flowing into primary sales,” said Midland Realty senior director Daniel Po. He added that market caution ahead of the upcoming US interest rate decision was also dampening buyers' appetite for secondary homes.
Po expected primary market sales to remain relatively active in the near term, as the trend of buyers favouring new projects looked set to continue.