The sector is still plagued by the spectre of Sars, deflation, unemployment and discounted sales
Some investors who have had their fingers burned buying and holding real estate during the six-year property slump are returning to the secondary market to make short-term bets on the movement of home prices.
Home prices in the secondary market are estimated to have surged more than 10 per cent from their nadir during the Sars outbreak earlier this year. Transaction values of primary sales are reported to have surged as developers raise selling prices by 3 to 5 per cent and cut preferential offers.
Estate agents say investors are taking advantage of the upswing in buying confidence to make quick profits. Some have already achieved handsome returns.
Jacky Yip Wing-cheong, Midland Realty Sha Tin assistant district manager, said an investor earned a 26 per cent profit on the resale of a 404-square foot unit at Wai Wah Centre in Sha Tin for $910,000 last Friday. The unit was bought for $720,000 in August.
Hong Kong Property Services Agency director Fredy Wu Yat-fat said a speculator had booked $1 million profit within two weeks from the sale of a 1,600-sq ft unit at Cavendish Heights in Jardine's Lookout for $89 million. He said the speculator could pocket $600,000, taking into account all transaction costs.
