Hong Kong’s primary real estate market has hit a soft patch ahead of the Lunar New Year, a normal seasonal pattern before the annual holiday which gets underway next week, although analysts caution that potential buyers are especially jittery amid the current drop in home prices. Only two of 101 flats on offer were sold on Friday at Reach Summit, a Yuen Long project developed by Henderson Land Development and New World Development, as of 3.50pm. “As the Lunar New Year is coming, sales have been slowing down. Buyers are not in Hong Kong,” said Bernie Chan, sales director at Midland Realty. “A lot of them are leftover stock. Buyers now will not be very enthusiastic.” Chan said that sales at the project have improved recently, as about 50 flats were sold in January. Hong Kong home prices gained just 1.6 per cent in 2018, ending the year down 9 per cent from July peak, government figures show Chan said developers may choose to sell flats on a first-come-first-served basis, as the number of buyers is no longer enough to justify the use of a balloting system. Sammy Po, chief executive of Midland, said leftover stock tends to sell more slowly than initial launches and developers intentionally offered a larger number of flats than the market could absorb to let buyers choose slowly. This is not the first time a sales launch at Reach Summit has been met with indifference by potential homebuyers. During a launch on November 19, the project reported just six sales among 102 flats on offer, according to data available as of 6:30pm that day. First commercial plot on Kai Tak runway fails to take off as Hong Kong rejects all nine bids for site Hong Kong home prices have dropped 9.2 per cent from their peak in July through December, according to the Rating and Valuation Department. Last year home prices rose 1.6 per cent, the weakest pace of gains since 2008. Zac Tang, assistant manager of research at Colliers International, said global economic headwinds and tighter credit conditions have been factors in dampening buyer interest. Colliers expects home prices to drop 3.8 per cent this year, even as a rebound is likely in the second half. “Deceleration of the global economy is a threat and buyer confidence could be further dampened,” Tang said.