Small home sales in New Territories secondary market outperform on steeper discounts
While the recent price correction offers some hope for Hong Kong’s struggling secondary residential market, the number of transactions have yet to return to normal levels, indicating that most home seekers are sitting on their hands waiting for better bargains.
For the three months to March 23, the northern New Territories was the first area to see flat sales exceed transaction volumes recorded in the previous quarter, according to Midland Reality data.
The northern New Territories saw 220 deals completed in the latest quarter, 2.8 per cent higher than the 214 deals seen in the previous quarter, Midland said. Sales in Kowloon and Hong Kong Island are still 21 per cent and 30 per cent below the previous quarter, respectively.
Owners in the New Territories were offering steeper discounts after Chinese New Year, agents said, with Kingswood Villas in Tin Shui Wai and Tai Hing Gardens in Tuen Mun the most active housing estates.
“Although sales have improved, overall secondary transactions are still low as most home seekers prefer to wait for prices to drop a further five to 10 per cent. Buying opportunities have not come yet,” said Derek Chan, head of research at Ricacorp Properties.
Overall secondary transactions are still low as most home seekers prefer to wait for prices to drop a further five to 10 per cent
Chan expects overall buying interest would return once transactions rebounded to a normal level of about 5,000 a month, as seen in 2012.