Home sales sluggish on Hong Kong secondary market as new homes draw buyers

Home sales in the secondary market remained sluggish last week as buyers were lured to two new housing projects launched in Yuen Long, agents said.

A total of 99 homes were sold in the week ended July 14 in the 50 housing estates monitored by Ricacorp Properties. Although that was up some 13 per cent on the previous week, it was the third consecutive week sales have languished below 100.

At the recent weekly peak for home sales in early June, deals numbered 233.

Some 55 flats were sold in the 35 largest residential estates tracked by Midland Realty, up from 52 the previous week.

"Home sales over the weekend were dominated by two new projects that dried up buying interest in the secondary market ," Ricacorp Properties director David Chan said.

In the new-home market, 165 flats sold last weekend, a big jump from the 18 sold the previous weekend and the largest number sold over a weekend since early February.

Sales were boosted by the relaunch of The Reach in Yuen Long, built by Henderson Land and New World, where 115 of a batch of 156 flats sold over the weekend. And 43 of 50 flats launched at New World's The Woodsville in Yuen Long sold.

In the secondary market a total of 14 deals were done on Hong Kong Island, the same as a week earlier. Sales in Kowloon rose to 40 from 31 the previous week, and 99 flats changed hands in the New Territories, up 13 per cent.

Chan said he expected the new-home market to continue to dominate the secondary market as more new projects were launched by developers.

"Secondary market sales are not likely to show a big improvement, and the number of deals is likely to remain at low levels of between 80 and100 next week," he said.