Secondary transaction volume plunges 40pc in one month Rising interest rates and the launch of Cheung Kong's luxury flagship The Legend in Tai Heng appear to have stalled secondary transactions in Repulse Bay. Two large developments, Grosvenor Place at 117 Repulse Bay Road and 56 Repulse Bay Road - a refurbishment of the Royal Cliff development - have so far recorded no transactions this month. 'It has been a long time since the last large-scale, high-end project was launched on Hong Kong Island. While it's also a traditionally quiet season for luxury transactions, we generally advise our clients to wait if they do not urgently need to sell their properties,' said Gary Yeung, an assistant sales director of Midland Realty. Jimmy Fong, director of residential development and investment at Savills, said the transaction volume of Repulse Bay homes had fallen about 40 per cent in one month. Last month, 19 properties, each priced at more than $10 million, sold at an average price of $13,602 per sqft, compared with 26 sales in April at an average of $10,563 per sqft, according to Savills. 'Most sellers in Repulse Bay are financially sound, so most of them are adopting a wait-and-see attitude rather than cutting their asking prices to promote sales, even though the market slowed significantly with recent rate hikes,' Mr Fong said. The drop in transaction numbers can also be attributed to real estate agencies relocating staff to promote the soon-to-be-launched The Legend. 'I'd say the drop in transactions [in Repulse Bay] is also due to a drop in the agents' demand [for business],' he said. Apart from 115 Repulse Bay Road, five units out of the six in Fairview Court at 94 Repulse Bay Road are on a tender which closes July 15. The 4,155 sqft units were attracting redevelopment interest, a property consultant said.