Hong Kong property on track for worst month ever recorded

As the colder weather sets in, Hong Kong property appears to be caught in a frosty market of its own, with monthly sales volume on track for a historical low, property agents say.

Centaline Property Agency expects the number of property transactions, includes apartments, shop units and car parks, of around 3,500 for January, the lowest in volume terms ever recorded in a data set dating back to January 1991.

Underscoring the lack of buyer interest, a luxury residential project by Henderson Land in Mid-Levels released on Sunday had attracted only 12 sales as of 4pm.

“Sales in the residential market are nearly frozen,” said Sammy Po , chief executive of Midland Realty’s residential department. He says flat sales in the primary and secondary residential markets are on track for about 1,800 transactions in January, the lowest since 1996.

Po said buying sentiment had been hurt by the stock market rout, a weakening Hong Kong currency and other signs of instability in global markets.

The Henderson Land project, known as the Wellesley, located at 23 Robinson Road features units ranging in size from 1,023 square feet to 1,735 sq ft, priced between HK$21,500 and HK$27,000 per square foot, or HK$24.14 million to HK$41.46 million each.

Factoring in a 1 per cent discount, the average price was HK$22,784 per sq ft, about 42 per cent lower than Sino Land’s Cluny Park. In September Sino Land sold units in Cluny Park at an average price of HK$39,471 per sq ft.

Wellesley, due to be completed in October 2018, will feature 90 residential units. Of these, 80 units will rang in sizes ranging from 1,023 to 1,735 sq ft. Ten special units will be offered in sizes from 978 to 4,746 sq ft.

Henderson Land will offer up to 40 per cent of a second mortgage on top of 50 per cent mortgage ceiling from bank for flats more than HK$7 million. This mean buyers could borrow up to 90 per cent of the unit price, such that an initial down payment of 10 per cent is required.

Thomas Lam, the general manager of sales at Henderson Land, said Sunday’s release resulted in revenue of HK$360 million from the sale of 12 units including the most expensive flat of HK$41 million,at Wellesley, according to late afternoon figures.

He said one buyer has bought two flats for a combined HK$50 million.