Surging prices force Hong Kong’s second-hand flat hunters to make instant decisions

Hong Kong’s skyrocketing property prices are pushing flat-hunters in the secondary market to quicken their purchase decisions.

Many buyers are so eager to get in before the surging market leaves them behind, they are signing on the dotted line within minutes of viewing a property, say agents. And they are often basing their decision on the strength of a photograph, rather than actually visiting the apartment in person.

With prices in some new projects shooting up by 20 to 40 per cent in the space of less than a month, more and more home-seekers are flocking to the secondary market.

“Young and single first-time buyers accounted for about 30 per cent of our deals since last month. Most of them failed to buy a studio or one-bedroom flat in recent project launches as developers increased prices in every new batch of units put on sale,” said Richmond Wong, assistant district manager at Ricacorp Properties’ Yuen Long branch.

“We have seen prospective buyers agree to buy in just 15 minutes, or even proceed to purchase without viewing the flats as long as the apartments are being offered within their budget.”

These prospective buyers are targeting flats being offered in the price range of HK$3.5 million to HK$6 million, he said.

“Most of them come from Kowloon and Hong Kong Island where it’s increasingly difficult to find a studio flat for less than HK$4 million. They are happy to see a wider choices of studio flats at two-year-old projects with recreation club facilities within their affordability,” said Wong.
For instance, a 272 square foot flat at Park Signature in Yuen Long costs about HK$3.5 million, while a one-bedroom, 400 sq ft flat comes in below HK$5 million and a two-bedroom, 500 sq ft unit is priced at less than HK$6 million.