HK flat sales dip as owners await price rises

PUBLISHED : Wednesday, 29 August, 2012, 12:00am
UPDATED : Wednesday, 29 August, 2012, 2:31am

Purchases of second-hand homes in Hong Kong slowed last week as owners withheld properties from the market in anticipation of further prices rises, according to property agents.

Some buyers were deterred from entering the market because of the recent strong price rises, the agents added.

The Royal Institution of Chartered Surveyors said the market had felt the effects of global economic turmoil. Home sales have begun to slow, suggesting the tentative recovery earlier this year may be fading, it said.

Data from Ricacorp Properties, showed that sales in the 50 estates that it monitored dropped 12 per cent to 340 deals during the week of August 20-26, a third successive weekly fall.

Director David Chan said the slowdown in sales was due in part to a lack of units on offer. "Owners are withholding their flats awaiting further rises in prices."

Sales on Hong Kong Island fell 31 per cent week-on-week, and in Nan Fung Sun Chuen just one flat was sold, down from the previous week's seven deals.

A survey conducted by estate agency Midland Realty, showed that sales at 35 housing estates it monitored fell 15 per cent to 184 deals during the week from August 20 to August 26.