End-users return to lift market
Sales activity in the secondary housing market rebounded last week as end-user interest increased.
There were 233 preliminary sales-and-purchase agreements sealed over the period (June 7 to June 13), according to data compiled by Ricacorp Properties.
This represented a 59.6 per cent jump from 146 deals clinched in the week from May 31 to June 6.
'Those are pent-up demand,' said David Chan, executive director of Ricacorp Properties. 'We do not see any significant increase in investors and new buyers.'
Patrick Chow, the head of Ricacorp Properties' research department, said: 'The recent good land auction result has improved buying sentiment.
'Those buyers who had visited units for months made up their minds and decided to enter the market.'
Last week, the government fetched HK$10.9 billion, or HK$12,540 per square foot (based on the developable gross floor area of 869,000 sq ft), from the third land auction on a site located in Ho Man Tin.
The site, which was sold after attracting 77 bids, also marked the second-highest land accommodation values transacted over the past few years.
Chow said sales activity would be helped by that pent-up demand in the next two weeks, but it would not be enough to boost the market. 'We need new demand and investors,' he said.
Chow hoped new demand would appear when developers launched major developments next month.
One of the most eye-catching new developments is the Hermitage project in Tai Kok Tsui.
Built by Sino Land, the project, which will offer 852 units, is expected to go on sale at more than HK$10,000 per square foot.
Confidence booster
The strong result of the government land auction revives buyers' interest
The number of bids attracted for a highly sought-after site in Ho Man Tin: 77
