Sales of super-deluxe houses are slowing after prices reached record highs
Sales of super-deluxe houses have slowed in recent months after a brisk trade early this year pushed average prices of selected properties up to 1997 record high levels.
Estate agents said the price gap between sellers and buyers was now so large that transactions probably would shrink, although prospects remained positive due to continuous scarcity of supply.
With buyers being dominated by the rich and famous, the top-end luxury house market has emerged as the star performer during the dramatic market recovery in the past year.
'Prices have skyrocketed in the past 12 months with an average increase of 100 per cent in general. For the smaller houses worth HK$40million to $50million each, prices have jumped about 80 per cent,' said Koh Keng-shing, managing director of Landscope Realty.
He said sales of super-deluxe houses were most active during January and February, and activity virtually doubled at the end of last year, but momentum had eased in recent months.