Hong Kong home sales in primary market heat up as developers cut prices

PUBLISHED : Wednesday, 12 August, 2015, 12:00am
UPDATED : Wednesday, 12 August, 2015, 12:00am

Hong Kong's heatwave did not deter buying interest for new homes as the price cutting strategy of developers proved effective, but the buying mood in the secondary market remains stagnant, according to industry experts.

In the primary market, there were 297 units sold over the weekend, compared with just 12 new flats sold on the previous weekend. Of the total, 275 units were sold by the Housing Society at its Heya Aqua project in Cheung Sha Wan.

Agents said sales in the secondary market remained weak despite the strong Heya Aqua sales boosting activity in the nearby area.

Some 5,951 applications with deposits were received for the Heya Aqua units, according to the Housing Society. The one to three-bedroom flats were being offered for HK$12,594 to HK$16,938 per square foot. Buyers are offered discounts of up to 10 per cent for the project, which is due for completion in 2017.

"Some home seekers who failed to buy a flat at Heya Aqua have looked for buying opportunities in the same area," said Kenny Leung, a senior sales manager at Midland Realty's West Kowloon office.

A 320 sq ft unit at Metro Harbour View in Sham Shui Po sold for HK$5.35 million, or HK$16,719 per square foot, to a buyer who originally planned to buy Heya Aqua, said Leung.

"The buyer … agreed to sign the deal even after the owner raised the selling price by an additional HK$50,000," he said.

The seller bought the unit for HK$3.05 million in July 2011, pocketing a profit of HK$2.3 million from the sale.

In the secondary market, five units were sold at the 10 largest residential estates tracked by Centaline Property Agency over the weekend, 28.6 per cent lower than the seven units sold in the previous weekend.

According to Centaline, the latest Centa-City Leading Index rose 0.41 per cent week on week to 146.07. The index shows Hong Kong home prices have risen 10.3 per cent since January.