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HONG KONG: Property sales and prices rebounded strongly last week, indicating the market had overcome its initial jitters over the likely severity of the government's cooling measures introduced in November to curb price growth, said analysts.
Two months after the government's move to rein in demand and price growth by imposing additional taxes on short-term trading of properties, sales in the secondary market rose 27% last week.
And in another signal of renewed confidence, 85% of units offered at a new housing project in Yuen Long were sold on the first day of its launch last Friday, Jan 14.
The Yuen Long sale was regarded as a test of sentiment in the primary market since it was the first mass housing project put on sale since the measures targeting speculators came into effect.
In the secondary market, 670 sales agreements were signed last week in the 50 housing estates monitored by estate agency Ricacorp. This was a 27% increase from the 528 units sold a week earlier.
"Sales volume in the secondary market last week was the highest since November," Ricacorp sales director David Chan said.
The strongest sales were at Kornhill and Nan Fung Sun Chuen estates in Quarry Bay, and at Island Resort in Siu Sai Wan.
"Since property prices were holding firm and developers were reluctant to offer discounts for the new project last week, buyers decided to enter the market in anticipation of a potential price rise in the coming peak season," said Sammy Po Siu-ming, a director of Midland Realty in the New Territories.
The seasonal sales' peak in Hong Kong comes after the Chinese New Year holiday weekend, which this year will be from Feb 3-6.
Meanwhile, developers Sun Hung Kai Properties and Luk Hoi Tong rode the wave of improved sentiment last week to sell 72 units, or 85% of the total units on offer, in the first-phase launch of their Park Nara project in Hung Shui Kui, Yuen Long.
Agents said the sales were satisfactory given the absence of speculators and the fact that the units sold for a large premium above prevailing transaction prices in the district.
Average prices for the first batch of 84 flats were HK$5,007 (RM1,964.83) per square foot, about 40% higher than current secondary transaction prices in nearby area.
The project comprises 173 units and is due to be completed in the third quarter of this year.
The first batch of 84 units ranged in size from 595 sq ft to 1,081 sq ft and sold for between HK$2.87 million and HK$8.49 million.
Patrick Chow, head of research at Ricacorp, said flat owners at Yoho Town in Yuen Long would benefit most from the good sales at Park Nara.
"A number of disappointed buyers turned to Yoho Town after they could not get the flats they wanted at Park Nara," he said.
Ten flats at Yoho Town changed hands last week, up from six units in the week before. Prices there also edged up 2% to HK$6,000 per sq ft.
Chow expects that the number of sales at City One in Sha Tin — a popular housing estate among speculators and end-users due to small lump sum investments required — would soon exceed those before the government introduced its price-cooling measures.
In October, 229 flats at City One were sold in the secondary market while 100 units were sold at the same estate in the first two weeks of this month alone.
In November, the government raised stamp duty on homes resold within two years — and as high as 15% if the property was resold within six months.
The Hong Kong Monetary Authority also reduced the maximum amount that banks could lend to buyers of homes worth HK$12 million or more, from 60% of the purchase price to 50%.
The maximum mortgage ratio for properties selling between HK$8 million and HK$12 million was cut from 70% to 60%. — SCMP
Two months after the government's move to rein in demand and price growth by imposing additional taxes on short-term trading of properties, sales in the secondary market rose 27% last week.
And in another signal of renewed confidence, 85% of units offered at a new housing project in Yuen Long were sold on the first day of its launch last Friday, Jan 14.
The Yuen Long sale was regarded as a test of sentiment in the primary market since it was the first mass housing project put on sale since the measures targeting speculators came into effect.
In the secondary market, 670 sales agreements were signed last week in the 50 housing estates monitored by estate agency Ricacorp. This was a 27% increase from the 528 units sold a week earlier.
"Sales volume in the secondary market last week was the highest since November," Ricacorp sales director David Chan said.
The strongest sales were at Kornhill and Nan Fung Sun Chuen estates in Quarry Bay, and at Island Resort in Siu Sai Wan.
"Since property prices were holding firm and developers were reluctant to offer discounts for the new project last week, buyers decided to enter the market in anticipation of a potential price rise in the coming peak season," said Sammy Po Siu-ming, a director of Midland Realty in the New Territories.
The seasonal sales' peak in Hong Kong comes after the Chinese New Year holiday weekend, which this year will be from Feb 3-6.
Meanwhile, developers Sun Hung Kai Properties and Luk Hoi Tong rode the wave of improved sentiment last week to sell 72 units, or 85% of the total units on offer, in the first-phase launch of their Park Nara project in Hung Shui Kui, Yuen Long.
Agents said the sales were satisfactory given the absence of speculators and the fact that the units sold for a large premium above prevailing transaction prices in the district.
Average prices for the first batch of 84 flats were HK$5,007 (RM1,964.83) per square foot, about 40% higher than current secondary transaction prices in nearby area.
The project comprises 173 units and is due to be completed in the third quarter of this year.
The first batch of 84 units ranged in size from 595 sq ft to 1,081 sq ft and sold for between HK$2.87 million and HK$8.49 million.
Patrick Chow, head of research at Ricacorp, said flat owners at Yoho Town in Yuen Long would benefit most from the good sales at Park Nara.
"A number of disappointed buyers turned to Yoho Town after they could not get the flats they wanted at Park Nara," he said.
Ten flats at Yoho Town changed hands last week, up from six units in the week before. Prices there also edged up 2% to HK$6,000 per sq ft.
Chow expects that the number of sales at City One in Sha Tin — a popular housing estate among speculators and end-users due to small lump sum investments required — would soon exceed those before the government introduced its price-cooling measures.
In October, 229 flats at City One were sold in the secondary market while 100 units were sold at the same estate in the first two weeks of this month alone.
In November, the government raised stamp duty on homes resold within two years — and as high as 15% if the property was resold within six months.
The Hong Kong Monetary Authority also reduced the maximum amount that banks could lend to buyers of homes worth HK$12 million or more, from 60% of the purchase price to 50%.
The maximum mortgage ratio for properties selling between HK$8 million and HK$12 million was cut from 70% to 60%. — SCMP
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