Hong Kong homes sales decline in face of uncertain outlook

Sales of new and second-hand homes dropped over the weekend, with buyers hesitant given the uncertain outlook for interest rates and US monetary policy.

Only 11 second-hand homes at the 10 largest residential estates sold at the weekend. Half of the estates had no sales, according to Centaline Property Agency.

Ricacorp Properties reported a similar picture, with 81 second-hand flats sold on 50 housing estates in the week July 1-7, a decline of 13 per cent week on week.

In the new-home market, 18 flats sold at the weekend, down from the 72 sold the previous weekend. Kerry Properties sold 12 flats at Bayview in Ma Tau Kok, Kowloon, over the weekend. The developer has already sold 120 flats at the project, or 69 per cent of the total of 175, for about HK$1.4 billion, according to a report from BNP Paribas.

Centaline's latest Centa-City Leading Index rose 0.54 per cent week on week to 121.88, for year-to-date growth of 5.3 per cent.

Sluggish second-hand sales implied homeseekers were hesitant about buying, said a report by investment bank Jefferies. "We reckon price correction will speed up in the second half when various launches are rolled out at more reasonable prices," it said.