Stock gains fuel luxury buys
Demand for luxury residential properties has shown signs of picking up, helped by the recent rally in the stock market, according to property agents.
Kennedy Asia managing director Max Chik Mei-yuk said some stock investors had taken profits and transferred the capital to other sectors of the economy as the Hang Seng Index had reached new highs.
'They have drawn their capital out of the stock market and used the money to upgrade residences,' Ms Chik said.
A growing number of potential buyers were in talks to buy luxury properties for their own use, she said.
According to Ms Chik, there have been only four big luxury property transactions, each with a value of more than $10 million, this month.
They include properties in Redhill Peninsular in Tai Tam, and Tregunter Tower and The Mayfair in Mid-Levels.
Ms Chik said that with the improved sentiment, the number and value of transactions would rebound in the next few months.
Ricky Wong, director of Wharf (Holdings') marketing agent Harriman Realty, said Harriman had recently been approached by property agents to begin sales of luxury properties such as Chelsea Court on the Peak, even though a marketing schedule had yet to be set.
That indicated improved demand for luxury properties, he said.
Mr Wong said the improving economy meant a positive outlook for the luxury sector.
The Chelsea Court development, due to be completed in the middle of this year, comprises 20 units of between 2,000 square feet and 4,000 sq ft.
Midland Realty sales manager Luby Liu said the stock market rally had strengthened property buyers' financial positions but this had not yet generated strong demand.