Records fall as prices of small flats rebound

Prices of small flats in the second-hand market have rebounded recently, with some units even changing hands at record highs.

This contrasts with the growing number of luxury homes being sold at a loss, as that segment has been hit hardest by the property market cooling measures the government imposed 15 months ago.

The rebound has prompted Patrick Chow Moon-kit, head of research at Ricacorp Properties, to revise upwards his forecast for home prices this year, from a drop of as much as 15 per cent to an increase of 5 per cent.

Agents expect the sell-out on Saturday of the first batch of 591 flats at Cheung Kong's City Point in Tsuen Wan to encourage more home seekers to buy flats.

"A 355 square foot flat at Serenity Park in Tai Po sold for a record HK$3.55 million last week. It surpassed the previous peak of HK$3.4 million in early 2014," said Anthony Man, a district manager at Centaline Property Agency.

Kingswood Villas in Tin Shui Wai is one of the most popular estates for first-time buyers.

"The minimum price for two-bedroom flats there was HK$2.4 million in March. But now you have to pay at least HK$2.65 million. Prices of three-bedroom flats also rose, from HK$2.9 million to HK$3 million, during the same period," said Lik Ma Sze-lik, a branch manager at Centaline.