Home deals stay low as buyers await measures

Home sales in both the primary and secondary markets in Hong Kong remain low as buyers expect further measures to cool rising prices.

Sales of second-hand homes rose a modest 2 per cent to 302 in the week to August 29 from the previous week, according to data compiled by Ricacorp Properties.

In the primary market, home sales rebounded last weekend with 30 units sold, an increase of 42.9 per cent week on week.

But the figure was still low compared with the 102 flats that changed hands over the weekend prior to the announcement of policy-tightening measures on August 13, according to Samsung Securities.

Sellers were refusing to cut prices to speed up sales while buyers continued to wait and see, David Chan Tai-wai, Ricacorp director, said. He said buyers were waiting to see if more measures to cool prices would be announced in the chief executive's policy address on October 13.

According to Centaline Property Agency, home prices last Friday stood at 83.61 per cent of the level in 1997 and were 1.8 per cent higher than a month ago.

Buyers were also looking to the coming land auction results, Chan said. Two sites will be put up for auction on September 29. One is a residential site at the junction of Fan Leng Lau Road, Wo Muk Road and Luen Hing Street in Fanling, and the other plot is on Lin Shing Road in Chai Wan.