Hong Kong property sales rebound in December
Property sales in Hong Kong bounced back in December, but total sales volume was still 30 per cent down from the year-earlier period, despite increased new home sales from developers.
Overall transactions for the month totalled 5,294, a rise of 11.8 per cent from the November, according to the Land Registry. The value of sales totalled HK$36.43 billion, up 22.9 per cent on month. Residential transactions in December totalled 4,043, a rise of 43 per cent from November, according to the Land Registry. The transactions were valued at HK$29.82 billion, up 43.4 per cent on month.
Analysts said the bounce-back was helped by flexible incentives offered by developers.
A total of 2,127 new homes were sold in December, up from November’s 1,025 deals, according to Ricacorp Properties.
The Land Registry recorded 1,335 new homes sales in three residential towers during December. These include the Capri in Tseung Kwan O developed by Wheelock Properties, Kerry Properties’ Bloomsway in Tuen Mun, and Cheung Kong Property’s Yuccie Square in Yuen Long.
“Last month’s increase was mainly helped by positive sales in the first-hand residential market in November,” said Derek Chan, head of research at Ricacorp Properties.
As there is usually a lag of a few weeks between a transaction and its registration at the Land Registry, the December figures reflect the market in November to early December.
“But as interest rates increase, developers will ease back on the launch pace for new developments such that total property sales will fall in January,” Chan said.
He forecasts the Land Registry will announce total property sales tallying roughly 4,600 deals next month.
In the secondary market, flat owners are willing to cut prices by more than 10 per cent to speed sale sales. Further price declines are expected, Chan said.
“Some end-users expect to see a rebound after a short-term correction, they do not mind to buy now,” Chan said .
The market’s expectation is that home prices have been entering a downward cycle which could last two to three years, and cumulative drop could amount to more than 30 per cent from its peak.
Centaline data shows the price index down about 7 per cent from September last.