Bricks and MortarSecond-hand market full of surprises
Time for government to consider whether its cooling measures are helping to keep prices up
Hong Kong's property market is always full of surprises. Even as some home seekers were waiting for property prices to fall this year, prices recently began to rebound.
Government cooling measures introduced in February last year did help rein in an overheated property market, with the double stamp duty and a tightening up on mortgage lending keeping investors and mainland buyers away from the market. Land prices dropped in the New Territories and the asking prices of some new projects became less aggressive.
But the picture in the secondary market is different. Average prices in 100 major housing estates in Hong Kong monitored by Midland Realty, have dropped by just 3 per cent since the measures began and by only 0.5 per cent in the first five months of this year.
And figures from the Land Registry show sales of second-hand flats increased by 21 per cent from 3,935 deals in April to 4,749 transactions in May, the highest in 15 months.
Strong sales boosted the prices of small flats to record levels. For example, a 297 square feet flat at Shatin Centre in Sha Tin sold for HK$3.95 million or HK$13,300 per square foot last week, a record for the estate.
And a three-bedroom flat in Kornhill, a middle-class housing estate in Quarry Bay, sold for a record-breaking HK$7.98 million.
The recent rebound in the mass residential market is due to pent-up demand and a shortage of second-hand flats for sale.