Hong Kong housing deals to rise in Year of the Ox, after downbeat Year of the Rat: analysts
- Overall property transactions in Year of the Rat were lower than the last two Years of the Rat, according to Ricacorp data
- Vaccines will be effective in Year of the Ox, leading to market recovery and belated jump in both transaction volumes and prices, Ricacorp’s Derek Chan says
“Affected by the pandemic and housing market policies … [while] the primary market was downbeat, the secondary market had a boom in the Year of the Rat,” said Derek Chan, head of research at Ricacorp. “In the coming Year of the Ox, [we] anticipate that the vaccines will be effective, leading to a market recovery and a belated jump in both transaction volumes and prices.”
Chan said he expected the number of overall transactions, which includes both residential and non-residential properties, to jump by about 10 per cent to 83,600 in the Year of the Ox.
In fact, Hong Kong recorded sales of 22 new homes in the first three days of the new year, the highest since 2013, according to Midland Realty. This compares to just two in the same period this past Year of the Rat, when the coronavirus outbreak and concerns about market prospects first emerged.
In the past few days, sales have mainly been reported at projects by Henderson Land Development, thanks to cash rebates of up to HK$48,800 (US$6,295) on buying certain flats and other perks.
Midland said the number of new homes sold this month might hit 1,200, the highest for the Lunar New Year month in four years, as Hongkongers are still not able to travel.
The secondary market also reported a higher turnover in the first four days of the Year of the Ox. For instance, in Tung Chung, there were seven transactions, compared to just one in the Year of the Rat, as potential buyers who are unable to travel returned to visit listed properties, Centaline Property Agency said.
Meanwhile, home prices will sustain an upward trend during the Year of the Ox, according to Centaline. The agency’s home price index, Centa-City Leading Index, dipped 0.3 per cent in the Year of the Rat to 176.53 in the last week. But it has rallied to a five-week high in the latest reading, after a three-week losing streak.