Buying mood drives secondary market sales to 25-month peak

PUBLISHED : Wednesday, 13 January, 2010, 12:00am
UPDATED : Wednesday, 13 January, 2010, 12:00am

The number of properties sold on the secondary market last week reached a 25-month high as buying sentiment continued to improve against a background of gathering confidence in Hong Kong's economic recovery.

Data collated by estate agency Ricacorp Properties from deals completed at 50 large housing estates show that secondary market transactions rose 18 per cent to 614 from 520 a week earlier.

'Prices in major housing estates jumped as much as 10 per cent within the week,' said Patrick Chow Moon-kit, head of the research department at Ricacorp Properties.

Home seekers have turned their focus to the secondary market since no major new projects were put on sale last week, according to Chow, and in the primary market only 10 units were sold as most developers were still selling the remaining units for sale.

In the New Territories, secondary market sales were up 35 per cent at 280 deals, from 207 in the previous week. Other housing estates registered impressive performances. Prices at Island Resort in Siu Sai Wan rose 10 per cent to HK$5,740 per square foot, while prices in Jubilee Garden in Fo Tan were up 9.1 per cent at HK$4,223 per square foot.

At Mei Foo Sun Chuen in Lai Chi Kok and Dawning Views in Fanling prices rose 6 per cent on the week and at Nan Fung Sun Chuen in Quarry Bay prices climbed 4.4 per cent to HK$5,333 per sq ft.

Chow expects price and transaction volumes to increase further in the weeks ahead as low interest rates buoy sentiment. Weekly sales in the secondary market could exceed 700 next month and prices could edge up a further 3 to 5 per cent, he said.