Hong Kong home sales cool off over Dragon Boat holiday ahead of new projects
Three-day holiday weekend and rising prices following a strong May performance are cited as factors leading to sales cooling off in June
Hong Kong’s property market slowed over the Dragon Boat Festival holiday weekend as outbound travel and unstable weather dampened viewing activity, while developers held back major launches ahead of a fresh pipeline of projects expected to hit the market in the coming weeks.
Developers rolled out 104 new homes during the three-day Tuen Ng or Dragon Boat Festival holiday weekend, but only around half had been sold by Sunday, according to Midland Realty, with most sales coming from existing inventory as developers refrained from launching new projects.
In the secondary market, Ricacorp estimated that 1,335 viewing appointments had been booked at 50 major housing estates for the June 20-21 weekend, down 4 per cent from 1,390 the previous weekend. The agency projected about 1,600 viewing appointments in total over the three-day period.
“There are probably quite a few Hong Kong people taking advantage of the three-day holiday to travel,” said Derek Chan, head of research at Ricacorp Properties. “We expect viewing activities to resume after buyers return next week.”
Agents said the market has begun to lose some momentum following several months of strong sales, as rising asking prices and a shrinking supply of cheaper units make it harder for buyers and sellers to agree on deals.
“Many of the cheaper listings have already been absorbed,” said Tony Siu, a branch manager at Ricacorp. “Owners are becoming firmer on prices, but buyers have not fully caught up with the recent price increases, leading to slower transactions.”