The recently flagging secondary property market is beginning to pick up as a round of price cuts brings buyers back into the market. Estate agents said another wave of aggressive price cuts was unlikely in the near future.
The number of secondary transactions at 35 big housing estates increased to 134 last week compared with 116 the previous week and a low of 75 at the beginning of the month, Midland Realty said.
However, the volume of transactions in recent weeks is nowhere near the aggressive buying seen in the first quarter, when some weeks saw more than 500 secondary transactions.
Real estate agents said aggressive price cuts of more than 10 per cent were not unusual in large, mid-range housing estates, which are popular with short-term investors.
Midland Realty chief analyst Buggle Lau Ka-fai said the most sales activity last week was seen at City One in Sha Tin, Mei Foo Sun Chuen in Mei Foo and Kingswood Villa in Tin Shui Wai.
'The primary market has almost come to a standstill and flat-hunters are focusing on the secondary property market,' Mr Lau said. 'Buying sentiment has improved a bit recently. People think that interest rates will peak in the near future.'
