House sales over weekend best in years, agents say
Primary residential sales surged about 25 per cent as a fresh round of price increases and a cutback by developers of generous sweeteners failed to deter eager Hong Kong home hunters at the weekend.
The secondary market also reported steady demand, indicating a recovery in confidence among home buyers as the economic outlook improved, estate agents said.
Midland Realty executive director Victor Cheung Kam-shing estimated that 480 primary residential units were sold at the weekend, compared with 380 a week earlier.
'Such encouraging sales from high-end to low-end projects in every district have not been seen for the past few years. The ratio of up-graders and investors entering the market has increased.'
He said demand in Tseung Kwan O, a typically oversupplied market, was stronger than expected, with about 130 units at Tseung Kwan O Plaza, Park Central and Ocean Shores sold last weekend despite price rises of up to 3 per cent and cuts in sweeteners.
The luxury residential market was also heating up, he said. More than 100 units at Residence Bel-Air phase two in Pokfulam were snapped up, with about 70 units sold at the weekend.
Leading developers including Cheung Kong (Holdings), Sun Hung Kai Properties, Henderson Land Development, New World Development and Sino Land have raised their prices over the past couple of weeks.
Prices at about a third of the projects on sale had risen 2 per cent to 5 per cent and favourable terms at about a third had been cut back, Mr Cheung said.
He predicted a price rebound of about 5 per cent in the primary market by year end. A recovery in the primary market could spill over into the secondary market.Ricacorp Properties executive director Willy Liu Wai-keung said the rise in primary transactions confirmed a bullish market. Overall residential prices could rebound by 10 per cent this year. 'The increasing transaction volume will be sustained by the positive government policy, especially that from [China],' he said.
However, some analysts said there would be no turnaround unless the economic fundamentals improved.
'The market has contracted for six years. Prices will fluctuate for some time before a genuine rebound,' said Centaline Property Agency senior research and marketing manager Wong Leung-sing.
Negative factors clouding the market included abundant new supply, high unemployment, deflation and the government deficit.
Centaline recorded price rises of about 2 per cent at secondary housing estates last week.
