Hong Kong home prices finally nudge higher, logging first gain in 31 weeks

Hong Kong home prices notched their first advance in 31 weeks but industry experts remain bearish as the market will be flooded with new flats due to be released for pre-sale over the next several months.

Analysts expect developers will cut prices as part of the sales strategy, a move could put pressure on the secondary market.

The Centa-City Leading Index which tracks secondary home prices at 100 estates showed prices rose 0.67 per cent week on week to 131.76 for the period ending February 28.

“Growing numbers of end users bought homes before Chinese New Year which gave a short term boost to home prices,” said Wong Leung-sing, an associate director of research at Centaline.

Taking advantage of improving market sentiment, developers are set to speed up the pace of marketing and promotion campaign for their new projects.

Agents said 10 projects comprising 5,000 units will be ready for launch or applying for pre-sale consents.

On Saturday Sun Hung Kai Properties will release the second batch of 30 units at Twin Regency in Yuen Long, while Henderson Land Development will offer 38 units at Double Cove in Ma On Shan.

K Wah International said the firm’s residential project, The Spectra, close to West Rail’s Long Ping Station, Yuen Long just secured its pre-sale consent.

The 912-unit project, due to be completed in January, 2018, will be put on the market this month, it said.

Cheung Kong Property will offer 12 villas at La Mansion in Yuen Long for tender which will be closed on April 29.

In Kowloon, CK Property has opened a show flat for the 228-unit The Zumurud, in Ma Tau Wai. The company spokesman said it planned to announce the price list next week.

Wheelock Properties said its One Homantin in Ho Man Tin should receive pre-sale consent in the near future.

Ricky Wong Kwong-yiu, managing director of Wheelock Properties, a wholly owned subsidiary of Wheelock and Co, expects the project could be put on sale in the second quarter.

One Homantin, scheduled to be completed in May, 2018, comprises 561 units with size from 370 sq ft to 1,564 sq ft.

In the same area, Kerry Properties expects its Mantin Heights will secure the pre-sale consent by the end of this year.

Eighty per cent of the 1,429-unit Mantin Heights will have two to three bedroom flats. Kerry Properties said the whole project is worth HK$30 billion.