New project launches hit secondary market
Launches of residential projects have further reduced demand in Hong Kong's subdued secondary market, where sales have now fallen for five consecutive weeks to a 19-week low.
Only 139 sales were recorded on the 50 biggest private housing estates monitored by Ricacorp Properties in the week ended June 10, down 10 per cent from 154 the previous week.
'As we enter the month of June, schools start to prepare for final exams and this usually means the secondary market will be quieter. At the same time, sales of three new residential projects have stolen the purchasing power in the market,' said Ricacorp director David Chan.
Hit hardest were New Territories estates that had to compete with two large new projects - New World Development's The Riverpark, above the Che Kung Temple MTR station in Sha Tin, and Sino Land's joint-venture Providence Peak in Tai Po. The Housing Society's private Sham Shui Po project Heya Green, which offers smaller flats at moderate to low prices, also hit sales of secondary flats in the New Territories which usually attract first-time buyers with tighter budgets, Chan said.
Just 56 secondary sales were recorded in the area during the week, down from 74 the previous week. The poorest performing estates were Fairview Park in Yuen Long and Coastal Skyline in Tung Chung.
There were no sales in nine of the 50 estates monitored by Ricacorp, up from eight the previous week. 'We believe home seekers will continue to be drawn to first-hand properties and will not return to the secondary market in the near future,' Chan said.
On the primary market, Heya Green sold all 320 flats put up for sale on Saturday, leaving seven special flats priced from HK$11.8 million to HK$26.8 million for sale later. New World Development has sold at least 170 of the more than 300 flats on offer at The Riverpark since last week, while Sino Land has sold more than 20 flats at its Providence Peak project since the weekend, Midland Realty's sales director for Sha Tin and Tai Po district, Raymond Chan, said.
Centaline Property Agency research shows only 17 per cent of the 6,726 secondary flats sold last month were priced at HK$2 million or below, down from 17.7 per cent in April and 29.1 per cent in January last year. Flats in the plus-HK$2m category accounted for 83 per cent of sales, up from 82.3 per cent in April and 70.9 per cent in January last year.