An unusual divergence of views has emerged over the direction of Hong Kong home prices
Government land sales have seemingly lost their role as a barometer for pricing in the secondary market, reflecting divergence between land developers and second-hand buyers
Hong Kong home sales in the primary and secondary residential markets are moving in opposite directions to the recent spectacular government land sale results as individual buyers stay sidelined in the wake of a higher stamp duty and an imminent US rate hike next month, industry experts say.
Agents say zero transactions were recorded in some major housing estates over the weekend even as a residential site in Kwun Tong that sold for a higher than expected price last Thursday.
Midland Realty said no deals were concluded in five out of 10 housing estates it monitored over the weekend. They were Taikoo Shing in Quarry Bay, South Horizons in Aberdeen, Laguna City in Cha Kwo Ling, Whampoa Garden in Hung Hom and Metro City in Tsueng Kwan O.
“Previously, owners will increase asking prices once government sites in nearby areas sold for high prices. But the sentiment has been changed as the hefty increase in stamp duty kept buyers away from the market,” said Ricacorp Properties director Willy Liu.
Previously, owners will increase asking prices once government sites in nearby areas sold for high prices
He said developers are willing to pay a premium for land which would be offered for sale in the next three to four years.