image

Hong Kong housing

Signs prices are cooling in Hong Kong’s secondary housing market

PUBLISHED : Wednesday, 23 September, 2015, 7:43pm
UPDATED : Wednesday, 23 September, 2015, 7:43pm

Hong Kong’s second-hand housing market appears to be cooling as owners offer discounts amid concerns over a potential interest rate rise next month, according to agents.

Overall prices rose about 2.5 per cent in June to September, representing a gradual easing in the rate of appreciation, according to Wong Leung-sing, associate director of research at Centaline Property Agency,

Further slowing in the pace of price growth is expected, he said.

“Despite the increase, we see a weaker growth as compared with the 6.5 per cent rise in second quarter and 6 per cent increase in the first quarter,” Wong said.

Housing minister Anthony Cheung admits Hong Kong homes are too dear

Wong attributed the softening in the market to concerns about the broader economy amid stock market volatility and a growing number of personal bankruptcies.

Since June, the average transaction value for flats sized between 753 square feet to 1,075 sq ft – which fall in the Rating and Valuation’s category of class C units - were HK$11.39 million, up 0.6 per cent from the second quarter, according to Centaline data.

Smaller flats, which had jumped 22.9 per cent in the past six quarters, now appear to have the least upward trajectory, according to Centaline.

“This category recorded the smallest gain,” Wong said.

For the period from June to September 15, flats with area of less than 430 sq ft are selling for an average of HK$3.79 million, up 1.4 per cent from the second quarter.

Of the 10 major housing estates in Hong Kong Island, Kowloon, and New Territories, sales were down by between 12 per cent and 59 per cent in August from a month earlier, according to Ricacorp. The total value of transactions dropped by 15 per cent and 38 per cent, according to Ricacorp.

The number of deals concluded at Kingswood Villas in Tin Shui Wai tumbled 51 per cent to 34 last month from July, Derek Chan, head of research at Ricacorp Properties said.