Sales up modestly on the back of price reductions

PUBLISHED : Wednesday, 18 January, 2012, 12:00am
UPDATED : Wednesday, 18 January, 2012, 12:00am


Home sales in the secondary market picked up modestly last week as owners cut prices to speed up sales.

Midland Realty said 74 sales were concluded at 35 selected housing estates during the week from January 9 to 15, up from 67 the previous week.

No sales were recorded at eight of the estates, compared with 12 estates with no sales the previous week, Midland chief analyst Buggle Lau Ka-fai said.

A similar picture emerged in a survey by Ricacorp Properties, which found 136 second-hand homes were sold during the same week, up from 118 a week ago. Agents attributed the rise in the number of deals to owners' willingness to cut prices.

Tive Yau, manager of Centaline Property Agency's Nina Tower branch in Tsuen Wan, said owners were willing to cut prices after a poor response from bidders for a site in Tsuen Wan. The MTR Corporation on Thursday announced it had rejected offers for the Bayside site at Tsuen Wan West station. It will invite expressions of interest to tender for the site at a later date.

The tender attracted four bidders - Sun Hung Kai Properties, Cheung Kong, Sino Land and a consortium of New World Development, Nan Fung Development and Wheelock.

Yau said an owner in Tsuen Wan's Vision City immediately cut his price by HK$200,000 and sold his 1,342 sq ft flat for HK$11.38 million. An owner in The Cairnhill cut his price by HK$1.26 million after the poor tender result and sold his flat for HK$6.93 million.

On Hong Kong Island, a flat in Fortress Metro Tower, North Point, sold for HK$3.8 million, or HK$6,872 per square foot, 6 per cent below the market's average, Centaline said.

Century 21 also brokered a deal below the market. A flat in North Point's Island Place sold at HK$5.88 million, 7 per cent below recent prices for similar Island Place flats.

In Tseung Kwan O, an owner sold his 504 sq ft flat after cutting the price by 6 per cent to HK$2.4 million.

Midland's Lau said weekly sales remained very thin despite a modest improvement from a week ago. The sale of 74 flats last week was relatively small when compared with the sales volume of 418 flats during the week from January 10 to 16 last year.

With the Lunar New Year holiday approaching, sales volumes were likely to fall again, Lau said.

David Chan, director of Ricacorp, expected sales volumes would drop by as much as 50 per cent week on week next week.


The number of flats sold last week, which was relatively small compared with the 418 flats sold from January 10 to 16 last year