Discounts on new homes force drop in prices in secondary market

PUBLISHED : Wednesday, 04 September, 2013, 12:00am
UPDATED : Wednesday, 04 September, 2013, 3:24am

Sluggish sales and the discounting of prices in the new-home market at the weekend have prompted sellers in the secondary market to cut their asking prices, according to agents.

The number of secondary-market transactions in Tuen Mun fell by 20 per cent over the weekend as buyers turned to the new-homes market, said David Chan Kwong, a branch manager at Many Wells Property.

In nearby Yuen Long, new flats hit the market at discounts of up to 10 per cent on Saturday.

Home sales in the 50 major housing estates monitored by agency Ricacorp Properties dropped 13 per cent to 84 for the week from August 26 to September 1 - the lowest sales volume for the last 21 weeks.

"As a result of the slow sales and discounting of new projects, some sellers in the secondary market have cut their asking prices by 5 per cent to lure buyers," said Chan.

New World Development sold 199 flats at its Park Signature development in Yuen Long at an average price of HK$8,345 per sq ft. Some flats at Park Signature were being offered for prices of as low as HK$2.5 million.

Midland Realty director Sammy Po Siu-ming said prices in the secondary market had begun falling in anticipation of growing competition for buyers. "Owners will come under growing pressure to adjust their asking prices downward if they want to get buyers interested," he said.

Cheung Kong said it would release more flats for sale at The Rise in Tseun Wan on Saturday. An additional 218 flats there were released yesterday, raising the total number available to 300.

Last week, Cheung Kong said buyers of flats at The Rise who signed up as club members and made their purchase under a cash payment plan would be offered 10 per cent discounts.

It would also pay the stamp duty on three-bedroom flats, and said the sweeteners would result in an average price of HK$8,792 per square foot of saleable area.