Rate cuts see secondary sales rebound strongly
Sales of homes in the secondary market rebounded strongly last week, buoyed by an improvement in buyer sentiment after interest rate cuts on the mainland and in Europe.
A total of 187 sales were recorded for the week ended July 8 in the largest 50 private housing estates tracked by Ricacorp Properties, a 43 per cent rise from 131 deals the previous week.
'As the European and mainland central banks adopted measures to increase liquidity in the market, both secondary and new residential projects reported good sales,' Ricacorp director David Chan said. 'Market sentiment has been lifted and hence we have seen a release in pent-up demand.'
Despite the strong recovery, after sales had declined for two consecutive weeks, sales remained below the normal level of about 250 transactions a week, Chan said.
The biggest rebound was in the New Territories, where sales in the 21 estates monitored by Ricacorp were up 47 per cent from the previous week's 70 deals, to 103 transactions. At Park Island, Ma Wan, there were eight sales, compared to none in the previous week, and at Bellagio, Sham Tseng, there were five sales, versus one the previous week. In Kowloon, secondary flat sales rose 45 per cent to 61, of which 13 were at Metro City, Tseung Kwan O. There were 23 sales on Hong Kong Island, up from 19.
Chan believed the secondary market would continue to improve. 'With the European and mainland central banks cutting rates, we expect an increase in liquidity flows to the Hong Kong market. Also, as there will be fewer new flats to go on sale this week, the secondary market should gain more support from buyers and we estimate that sales can exceed 200 or reach as many as 230 this week.'
Cheung Kong and Chiaphua sold another 150 flats in their joint development in Tseung Kwan O, The Beaumount, over the weekend, according to Nomura Equity Research. New World Development sold six at The Riverpark, Sha Tin. A Sino Land-led consortium sold four flats at Providence Peak, while Sino itself also sold three special flats at Lake Silver in Ma On Shan. Four flats in Kerry Properties' 171-flat Lions Rise in Wong Tai Sin also sold.