Resilient Hong Kong Property Market Sees Price Hikes Amid High Demand

Despite global uncertainties, the housing market in Hong Kong continues to attract significant interest, with new residential projects increasing prices after drawing thousands of buyers. This surge in demand for new flats is, however, placing considerable pressure on the secondary market.

Over the past weekend, ten major housing estates monitored by Centaline Property saw a mere nine transactions, mirroring figures from the previous week. Remarkably, half of these estates did not register any sales at all.

Louis Chan Wing-kit, executive director of Centaline Property, noted that approximately 200 flats were sold in the primary market over the weekend. Buyers were particularly drawn to competitively priced properties at a development on Hong Kong Island.

In the past month, several desirable units in the secondary market found buyers quickly after the lifting of property restrictions. However, these segments are now experiencing price pressures due to diminished demand.

Midland Property reported a similar trend, with only nine transactions in the estates it tracks, marking the lowest activity in seven weeks and the first single-digit transaction count since the budget announcement in February.

In the primary market, CK Asset (1113) has raised the prices for nine units at the Blue Coast development in Wong Chuk Hang following the cancellation of two transactions in Tower 2B. The prices for these units were increased by 10 percent, setting the cost at HK$21 million for an 813-square-foot unit and HK$20.48 million for a 746-square-foot flat. Prices for the remaining seven units in the same tower were adjusted upwards by 2 percent.

Park Seasons, the 12B phase of Lohas Park, experienced overwhelming interest with its 138 flats being nearly 13 times oversubscribed after receiving over 2,000 checks. Ricky Wong Kwong-yiu, executive director of Wheelock Properties, indicated that the sales plan for this new batch will be finalized soon, with the initial sales potentially launching on Saturday. The flats, ranging from 322 square feet to 496 square feet, are priced between HK$5.16 million and HK$8.34 million, averaging HK$14,488 per square foot after discounts.

Meanwhile, Seasons Place, the 12A phase of Lohas Park, sold seven flats last Saturday. With about 87 percent of its units sold, the project has generated nearly HK$3.6 billion. The initial batch of flats in Seasons Place was priced at an average of HK$14,188 per square foot after discounts, which is HK$300 less than that of Park Seasons.