Trade war truce lifts confidence for Hong Kong’s homebuyers, bolstering sales at the third-biggest weekend launch of 2019
- More bidders showed up on Saturday afternoon as positive news on trade negotiation lifted sentiments
- Wheelock Properties sold 460 of the 504 flats at its Grand Montara complex in Tseung Kwan O as at 930pm, agents said, adding that they expect the project to sell out by the day’s end
Hong Kong’’s third-largest weekend sales of residential property this year got off to a good start, as homebuyers piled into the market ahead of a property bull run that may be regaining its paces.
Sentiments were also bolstered by the truce in the year-long US-China trade war, as the presidents Donald Trump and Xi Jinping agreed at the G20 meeting in Osaka to resume negotiations.
Up to 460 flats, or about 90 per cent of the 504 units of Grand Montara on offer by Wheelock Properties were sold in Tseung Kwan O as of 9:30pm, according to sales agents.
“More bidders showed up in the afternoon, compared to the morning, very likely boosted by positive news from the trade talks at the G20 between China and the US,” said Louis Chan Wing-kit, vice-chairman for Asia-Pacific at Centaline, adding that he expects Grand Montara to sell out by the day’s end.
Grand Montara received 7,800 bids for the 504 units on offer, or an average of 15 bids for every available flat, the second-highest registration of interest this year among sales launches. The project is popular, after the launch of its earlier phase Montara sold out last month.
To drum up interest, Hong Kong developers had been cutting prices. Grand Montara’s developer Wheelock Properties offered average discounts of up to 5 per cent on 101 flats, selling them for HK$13,999 per square foot.
The buoyant sentiment spilled over to Tuen Mun, where Sun Hung Kai Properties sold half of the 38 Mount Regency flats on offer. The developer is likely to sell all the remaining units, Centaline’s Chan said.
US president Trump also said he would allow companies to continue selling products to Huawei Technologies, while he would consider whether to move the Chinese tech company off an export sanction list.
“Overall, sentiments have strengthened,” Centaline’s Chan said. He expected Hong Kong developers to put more properties on sale in July.
As sentiments warm up, second-hand property may rise 2 per cent in price in July, Chan said, while developers may scrap the current discount placed on new homes to lure buyers.
Sammy Po, chief executive of the residential department at Midland Realty, also said he thought the market would improve in July.
“The sale on Saturday went well,” Po said. “Trade war is not that intensive, so investors are more confident about the investment prospect.”
