PROPERTY MARKET
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Hong Kong Property

Sales in Hong Kong’s primary and secondary markets continue to fall

PUBLISHED : Tuesday, 10 November, 2015, 2:49pm
UPDATED : Tuesday, 10 November, 2015, 2:49pm

Activity in Hong Kong’s primary and secondary markets remained lacklustre as the market focus has shifted to a number of upcoming launches.

In the primary market, 110 units were sold over the weekend of November 7-8, 13.4 per cent lower than the 127 units sold in the previous weekend.

There were seven units sold at the 10 largest residential estates tracked by property agent Centaline Property Agency, one unit more than that of the previous week.

Investment bank Barclays said the Centa-City Leading index, a weekly index monitoring the secondary home market, fell for the fourth week. With last week’s 0.85 per cent week-on-week correction, Hong Kong home prices have now fallen to 141.76. It was 3.51 per cent down from their peak in mid-September.

Eyes were set on the two major launches including Kerry Properties’ Bloomsway near Harrow International School in Tuen Mun and Wheelock Properties’ Capri in Tseung Kwan O, said analysts.

Despite weakening market sentiment, Kerry Properties priced the first batch of 223 units of its 1,100-unit Bloomsway development at an average price of HK$10,880 per square foot. Barclays said the pricing represents a 19 per cent premium of secondary prices of HK$9,160 per sq ft for low-rise units at the nearby Avignon.

To stimulate buying interest, Kerry offers a high loan-to-value financing plan, providing up to 30 per cent in its top-up second mortgage plan with an interest rate set at 3 per cent for the first three years, one percentage point below Prime for the fourth and fifth years and the prime rate thereafter. The project has received more than 1,000 registrations of interest, implying an oversubscription of about 3.5 times.

Wheelock has uploaded price lists for the 148 units of Capri in Tseung Kwan O. The average selling price after discount for the first batch is HK$12,080 per cent sq ft. That is about 10 per cent below the secondary comparables in the district.

More launches are coming ahead, with Cheung Kong receiving the presale consent for its 1,129-unit Yuccie Square in Yuen Long and Sun Hung Kai Properties’ 1,027-unit Park Vista phase one,also in Yuen Long.

Given the rising possibility of a US interest rate hike in December, BNP Paribas expects developers to remain aggressive in launching large-scale projects in the coming weeks.