Sun Hung Kai Properties

Labour Day influx seen to boost HK transactions

PUBLISHED : Wednesday, 02 May, 2012, 12:00am
UPDATED : Wednesday, 02 May, 2012, 12:00am

Hong Kong property sales volume is expected to rebound as much as 15 per cent this week as demand rose over the three-day Labour Day holiday, a peak season for mainland tourists visiting the city, according to property agents.

David Chan, a director at Ricacorp Properties, believes an influx of potential buyers during the three-day holiday, which ended yesterday, would lift the number of transactions in the secondary residential market after declining for two weeks.

Chan believes sales volume this week would increase by 10 per cent to 15 per cent. But the bump would not be enough for a major turnaround.

'No significant breakthrough will be seen in sales volume as there are limited units for sale,' Chan said.

Sales in the 50 largest private housing estates monitored by Ricacorp dropped to 283 in the week to April 29 from 289 a week earlier, or 2 per cent.

Despite the decline in home sales, Chan said prices rose 0.6 per cent from a week earlier as most apartments sold at high prices.

Sammy Po, a director of Midland Realty, said the firm had arranged for several groups of potential buyers from Shenzhen and Guangzhou to visit new projects in the New Territories yesterday.

'These groups of buyers are looking for apartments worth HK$10 million to HK$20 million each,' he said. 'Most of them are fast decision-makers as long as they like the units.'

Argus Mak, senior sales director at Centaline Property Agency's Sha Tin branch, said bookings for flat viewings rose 20 per cent this weekend from a week earlier.

'We have registered 30 bookings this week,' Mak said. 'The market will become buoyant after being slow for a couple of weeks.'

Po said transactions could increase further as most buyers are waiting for two major projects to hit the market this month.

They are 1,091-unit Century Gateway at Tuen Mun Station, a joint venture between Sun Hung Kai Properties and the MTR Corporation, and New World Development's 981-unit The Riverpark at the Ma On Shan Line's Che Kung Temple Station. A strong response would be a positive sign for the market, Po said.