Poor sales at housing projects a blow to buying sentiment

Recent poor sales at some private residential projects as well as a subsidised development indicate rich and not so rich homebuyers are staying out of the market, pushing up expectations that a price correction could accelerate.

On Saturday, Mantin Heights in Ho Man Tin, built by Kerry Properties, became the third private project to see disappointing sales, with just 31 per cent – 34 units out of 108 – sold at the luxury residential project in the first two days following their launch.

A 338-unit subsidised housing project in Kai Tak, De Novo, also received a subdued response with just 61 flats sold by the Urban Renewal Authority in the first four days of sales to Friday. The authority received 12,685 applications for subsidised flats in the De Novo project in January.

Wong Leung-sing, associate director of research at Centaline Property Agency, said the failure of the subsidised housing project to drum up sales despite being offered at affordable prices would negatively affect overall market sentiment.

“The majority of these eligible buyers decided to abandon their purchase rights as they expect home prices will fall further,” he said.