Hong Kong Real Estate Faces Long Bear Market | HK Weekend Property Market Recap 

Hong Kong paused government land sales of commercial and residential plots for this quarter, for the first time in 13 years, as private housing supply approaches its annual supply target.

The government has sold land on a quarterly basis since 2011, and the unexpected move was deemed necessary by Centaline chairman Shih Wing-ching, due to weak market demand following a string of unsuccessful tenders.

Shih also forecast a decline in home prices until the first half of the year. To boost the market and ensure stability, the chairman called for a cancellation of property cooling measures, and proposed injecting capital into the market.

Meanwhile, the reputed analyst Andrew Look was less optimistic. He said Hong Kong could remain in bear market territory for a long while, and projected steep price declines in commercial real estate.

Over the weekend, Hong Kong’s four biggest real estate agencies recorded seven to 17 deals for the city’s top ten blue-chip housing estates, all in the double digits.

The government earlier softened some property cooling measures to attract foreign workers by suspending stamp duty for new, incoming talent. Following these changes, there’s been a noticeable influx of mainland professionals.

One related transaction was recorded at Grand Promenade in Sai Wan Ho. The top-floor, sea-view unit in Block 3 measured 947 square feet in size, and offered three bedrooms. Originally listed for HK$24.8 million, the asking price was reduced by HK$2.2 million. The flat was sold for HK$22.6 million, at about HK$23,800 per square foot.

Meanwhile, three days after viewing, another buyer purchased a rare sea-facing apartment at The Latitude in San Po Kong.

Looking at the first-hand market, trading volume was relatively low, with only 16 deals recorded.

Heading into the New Year, developers are rushing to the market with sales launches. The first developer to launch a new project this year, Wang On Properties, received a positive market response for its new development Phoenext in Wong Tai Sin. Over three consecutive days, the developer put an additional 92 units up for sale, which, combined with the first price list, adds up to 142 units available.

Next, 13 units of CK Asset’s The Coast Line II project will be launched for sale this Saturday. Among them, seven units will be sold on a first-come, first-served basis. The remaining five feature units will be sold by tender.

Meanwhile, Asia Standard’s High Park I in Hung Shui Kiu launched a new price list featuring 63 units. Among them, 58 units came from Tower 2. Prices start from HK$3.397 million, at an average price per square foot of HK$11,797.

Finally, new developer Lofter Group said it would release the first price list for its Elize Park project within this month, with sales expected to be launched before the Lunar New Year. 

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