Primary sales at zero for fourth weekend as buyers hold back

The primary property market did not record any transactions for the fourth consecutive weekend due to a lack of buying interest and developers' reluctance to launch projects at lower prices.

Market watchers said the situation would continue until early next year with the Christmas and New Year holidays approaching.

'Peaking interest-rate rises failed to boost homebuyers' confidence. They prefer to remain on the sidelines while developers are unwilling to launch new projects, limiting choice in the market,' said Wong Leung-sing, a senior research manager at Centaline Property Agency.

Mr Wong forecast the sentiment to continue until Lunar New Year when developers were expected to put their luxury projects on sale.

According to Centaline research, for the month to last Thursday, only 110 sale and purchase agreements worth $600 million had been signed between homebuyers and developers.

The agency estimated there would be no more than 170 deals for the whole month, worth a combined $900 million - the lowest since July 1995.

Although it was the first weekend after Hong Kong lenders raised their prime rates by 25 basis points to between 7.75 per cent and 8 per cent to match an increase by the United States Federal Reserve, Mr Wong said it had little to do with the lack of transactions.

'This time, as expected, local lenders only matched the US rate rise instead of exceeding it, so it would have had little effect on the property market,' he said.

In stark contrast, sentiment in the secondary property market continued to improve as owners cut their selling prices by 5 to 10 per cent.

Research by Ricacorp Properties showed there were 456 transactions in the 50-benchmarked residential properties for the month to last Thursday, a 53 per cent increase from the same period last month.

Secondary property prices in the earlier half of the month dropped 1.3 per cent from the corresponding period last month.

Year-end blues

Market watchers estimate situation to go into New Year

Analyst discounts effect of recent increase in interest rates

Secondary market sentiment rises as sellers cut prices