Secondary Property Transactions Drop to 9-Week Low as Primary Market Dominates
AM730 · 1 SOURCESabout 2 hours ago5 MIN
Summary
Hong Kong's secondary property market is experiencing a significant downturn, with the 50 key housing estates recording only 51 transactions during the week of October 5-11. This figure represents an 18% decline from the previous week's 62 deals and the lowest level in nearly nine weeks. The sharp drop is attributed to the overwhelming focus on new primary market launches, particularly in urban areas with lower-priced large-scale developments, which have diverted both agent resources and market attention away from the secondary sector.
Key Points
- The 50 indicator housing estates recorded just 51 transactions during the week of October 5-11, down 18% from the prior week's 62 deals, marking two consecutive weeks of decline
- The New Territories region saw the sharpest drop, with 21 indicator estates recording only 24 transactions, a 29% decrease from the previous week's 34 deals
- Hong Kong Island's 8 indicator estates recorded just 5 transactions, down 29% from 7 deals the prior week, with five estates reporting zero transactions
- Kowloon was the only region to buck the trend, with 21 indicator estates recording 22 transactions, a 5% increase from 21 deals previously
- The number of housing estates with "zero transactions" increased by 40% to 21 estates, up from 15 the previous week
Why It Matters
The widening gap between sellers' and buyers' expectations has created a stalemate in the secondary market, with owners reluctant to reduce prices while potential buyers flock to new developments seeking better value. This trend could have lasting implications for property agents and smaller developers who depend on resale transactions, as the dominance of primary market launches shows no sign of abating in the near term.
According to Ricacorp Properties research director Chan Hoi-chiu (陳海潮), the market lacks clear positive or negative catalysts, suggesting the current downturn may persist as buying power remains locked in the primary market.
The widening gap between sellers' and buyers' expectations has created a stalemate in the secondary market, with owners reluctant to reduce prices while potential buyers flock to new developments seeking better value. This trend could have lasting implications for property agents and smaller developers who depend on resale transactions, as the dominance of primary market launches shows no sign of abating in the near term.
According to Ricacorp Properties research director Chan Hoi-chiu (陳海潮), the market lacks clear positive or negative catalysts, suggesting the current downturn may persist as buying power remains locked in the primary market.