HK secondary deals climb 11pc as buyers fear price rises

PUBLISHED : Wednesday, 21 April, 2010, 12:00am
UPDATED : Wednesday, 21 April, 2010, 12:00am

Home sales in Hong Kong's secondary market jumped 11 per cent last week as early birds worried that prices could increase further after new projects are launched in the market bought flats ahead of the releases.

Some 500 units were sold from April 12 to 18 in the 50 key housing estates monitored by estate agency Ricacorp Properties, compared with 451 deals in the previous week.

Buyers were active in West Kowloon, where 194 deals were recorded in the 20 major housing estates in the area, up 23 per cent. Island Harbourview, Central Park and Park Avenue in West Kowloon near the Olympic MTR station saw 21 flats changing hands, compared with just four deals a week ago.

Property sales on Hong Kong Island increased 15 per cent to 63 deals.

David Chan Tai-wai, a director at Ricacorp, said buyers had bought ahead of the planned release by the consortium led by Sino Land of the upmarket project, The Hermitage. Sales in Tung Chung, with deals recorded at Caribbean Coast and Coastal Skyline, jumped 47 per cent to 178, an eight-year high for the area. Chan said the sharp increase was due to news that a residential site in the area had been triggered for land auction on May 11.

In the primary market, Ricacorp managing director Willy Liu Wai-keung said sales of units fell to about 50 deals at the weekend, compared with about 100 transactions a week ago. 'Developers are focusing on selling their remaining units at new projects such as Festival City in Tai Wai. It is normal to see sales in the primary market dropping when this happens,' he said.