Drop in sales as buyers hold back
THE slump in sales in Hong Kong's residential market looks likely to continue as buyers hold on to their deposits and cling to the hope that prices will drop further.
For property agents, the sales front has been a little too quiet for comfort in the past two months.
The only relief has been a slight pickup in the number of rentals as potential purchasers opt to rent while waiting for the uncertain conditions in the market to improve.
Despite the fact that it is home to some of Hong Kong's cheapest flats, the New Territories residential market has not escaped the wait-and-see attitude that has seen transaction numbers slow in the more sought-after areas.
Asking prices for flats at Kingswood Villas and Sun Tuen Mun Centre in Yuen Long fell by nearly two per cent during the past month to $2,998 per square foot.
A similar pattern emerged in Tuen Mun where average asking prices dropped by almost five per cent.
The Tuen Mun sample was based on eight developments, including Handsome Court, Chi Lok Fa Yuen, Handford Garden, Gold Coast and The Trend Plaza.
Flat prices on the eastern side of the New Territories fared slightly better.
Asking prices for flats in Eightland Garden, Serenity Park, the Tai Po Centre and Uptown Plaza in Tai Po crept up by an average of 1.47 per cent during the past month to $4,602 per sq ft.
Asking prices also rose in Fanling, where an increase of 1.83 per cent was recorded.
David Faulkner, a partner with Brooke Hillier Parker, said flats in the eastern New Territories were generally more popular with buyers because they had better access to the MTR and the KCR.