Weekend housing market sends mixed signals
Sales of new homes and flats in the secondary market over the weekend showed mixed results, according to property agents.
Sales in the primary market were robust for the second week in a row as developers sold nearly 200 new homes over the weekend, on top of the 223 new homes sold in the previous week, they said.
Agents said the number of new flats sold might nearly double to around 1,000 this month compared to last month.
During the past weekend, Sun Hung Kai Properties sold around 100 units at The Wings II in Tsueng Kwan O while Henderson Land sold more than 80 flats at The Reach in Yeun Long.
Hang Lung Properties, which on Thursday priced 10 of its flats at AquaMarine in Cheung Sha Wan that have been vacant for five years, only sold three units.
Bernie Chan, a regional sales director of Midland Realty, said homebuyers who had been holding back for the past two months while they waited to see what was said about the future of the housing market in the chief executive's policy address were now moving ahead.
"The market was stagnant in November and December, as vendors were worried about a new round of crackdown on the housing market, but obviously they saw no quick solution following the speech," Chan said.
Chief Executive Leung Chun-ying unveiled plans to increase land supply and the supply of public housing flats in his first policy address on January 16, but both transactions and property prices continued to surge after his speech.
Chan said other developers might put more units onto the market amid the good response.
Kowloon Development and Henderson Land have begun receiving reservations for two developments: Upper West in Tai Kok Tsui and High Point in Cheung Sha Wan.
Sales in the secondary home market remained stagnant this weekend however, with only 27 deals in the 10 benchmark housing estates, a drop of more than 40 per cent over the previous week, according to Centaline Properties.
Patrick Chow Moon-kit, head of research at Ricacorp Properties, said the primary home market might have drawn some of the buyers from the secondary market as some sellers raised prices after the policy address.