Weekend Property Deals at Top 10 Estates Plunge to 3; Developers' Competitive Pricing Draws Buyers
AM730 · 1 SOURCES1 day ago2 MIN
Summary
The top 10 monitored housing estates recorded only three secondary transactions over the weekend of September 26-27, marking a 25% drop from the previous weekend's four deals. Ricacorp Properties attributes the slowdown to the Mid-Autumn Festival falling on September 25, which diverted public attention to holiday gatherings and travel, combined with lingering buyer hesitation over cumulative U.S. Federal Reserve interest rate hikes. While secondary sellers remain firm on asking prices, developers are strategically launching new projects at competitive prices that are siphoning market attention and purchasing power.
Key Points
- Weekend secondary transactions across ten monitored estates dropped to 3 deals on September 26-27, down from 4 deals the prior weekend—a decline of approximately 25%
- Hong Kong Island recorded zero transactions from all three monitored estates, while Kowloon's City One contributed 2 deals and New Territories' Caribbean Bay added 1 deal
- Ricacorp Properties President Liao Weiqiang cited the Mid-Autumn Festival on September 25 as dampening both viewing and purchase interest, with buyers now demanding significant discounts while sellers hold firm on asking prices
- One transaction involved Caribbean Bay Phase 1 Tower 5 High Floor A (971 sq ft), sold for HK$9.6 million at approximately HK$9,887 per sq ft
- City One Phase 2 Tower 7 High Floor E (441 sq ft) fetched HK$6.75 million (HK$15,306 psf), and Phase 1 Tower 1 Mid Floor F (364 sq ft) sold for HK$5.75 million (HK$15,797 psf)
- Ricacorp noted that primary market developers are adopting flexible launch strategies with aggressive marketing and restrained pricing to capture market focus and absorb buying demand
Why It Matters
With market expectations that the U.S. Federal Reserve may raise interest rates again before year-end, the uncertainty surrounding borrowing costs is likely to sustain the current impasse between secondary buyers seeking discounts and sellers refusing to budge. This dynamic, combined with continued new project launches in the primary market, points to continued pressure on Hong Kong's secondary property transactions in the near term, potentially affecting related industries from estate agencies to furniture retailers .
With market expectations that the U.S. Federal Reserve may raise interest rates again before year-end, the uncertainty surrounding borrowing costs is likely to sustain the current impasse between secondary buyers seeking discounts and sellers refusing to budge. This dynamic, combined with continued new project launches in the primary market, points to continued pressure on Hong Kong's secondary property transactions in the near term, potentially affecting related industries from estate agencies to furniture retailers .