Hong Kong secondary home market picks up steam

The average price per square foot of a unit at Sun Hung Kai's One Regent Place development is HK$6,383 (US$821).

Hong Kong home sales jumped upwards recently with a push from developers to market new projects having a spillover effect and fuelling interest in the secondary market.

A total of 270 apartments were sold in the secondary market from Apr 4 to 10, up 14 per cent from the 237 transactions in the previous week, according to data compiled by Ricacorp Properties from sale and purchase agreements signed in the 50 housing estates that it monitors.

“The secondary market had been stagnant due to rising interest rates. But it is now rebounding and showing signs of recovery,” Ricacorp director David Chan told The South China Morning Post.

Sales were particularly strong on Hong Kong Island, which recorded a growth in transactions of 36 per cent from a week earlier to 57 deals done. Major housing estates such as Taikoo Shing, South Horizons and Island Resort performed the best.

Sales in Kowloon rose 23 per cent with 85 flats changing hands. Telford Garden in Kowloon Bay saw five flats changing hands during the week, up from just two the previous week.

Park Central in Tseung Kwan O, and Banyan Garden and The Pacifica in Cheung Sha Wan recorded a combined 16 deals done. Sales in the New Territories edged up 2 per cent to 138 transactions.

With more new projects to be offered for pre-sale, potential buyers could be lured to both the primary and secondary markets in coming weeks, Chan said. This could unlock pent-up demand and lift the number of deals in the secondary market back above 300 a week.

On Monday, Sun Hung Kai Properties announced the price list of all 323 flats in its development One Regent Place in Yuen Long at an average price of HK$6,383 (US$821) per sq ft. A 1,727 sq ft flat on the top floor with a 1,000 sq ft roof top was pitched at HK$20.05 million (US$2.58 million), or HK$18,000 (US$2,315) per sq ft.