(By Yan Lunle)
The second hand property trading slows down because the Sino-US trade war deteriorated, the available second hand properties for sale decrease and some purchasing power is attracted by the first hand property. On the past weekend (18th to 19th), the transaction volumes of the ten leading housing estates of Centaline and Midland were only 5 and 10 cases respectively, largely down by 58.3% and 23.1% respectively. The industry believes that buyers are cautious recently, while the sellers are tough on pricing , making both sides into the stalemate, and it is expected the second hand property transaction volume would continue in low level under the unclear market conditions.
The turnover of Centaline hit a 14-week low.
Centaline ten leading housing estates recorded 5 transactions on Saturday and Sunday, down 7 or 58.3% by week and hit a 14-week low. The APAC vice chairman and the residential department president of Centaline, Chen Yongjie expressed, over 2,000 new property transactions were recorded in the first half of May, attracting a large amount of the second-hand purchasing power, and narrowed the second hand property transactions largely from last month. The Sino-US trade war has not yet been resolved, buyers are cautious in entering the market, and they are reluctant to pursue higher price, while sellers are tough on pricing, so both sides get into a stalemate. Under the competition from the first hand property and the deterioration of the Sino-US trade war, the second-hand trading volume will continue to be in low level.
Midland: Owners’ tough attitude affects transactions.
As for the property statistics from Midland, in the past 2 days, a total of 10 transactions were recorded in the top 10 blue-chip housing estates, which was about 23.1% lower than the 13 cases in last weekend. The chief executive of the Midland residential department, Bu Shaoming believes, the major reason for the falling of the second-hand property transactions on the weekend is the lack of the houses available for sale but not due to the deterioration of the Sino-US trade war, especially the high-quality popular houses, which were quickly sold earlier in the first quarter, and current remaining houses are mostly has tough pricing, stopping many buyers who hoped to take the advantage of the trade war to buy cheap houses.
Bu Shaoming expects that there is no way to alleviate the problem of second-hand property shortages, so it is estimated that the second-hand transaction volume is difficult to return to the level of the first quarter in short-term, while the property prices would continue rise due to the supply and demand effect, with new high-priced transactions would appear one after another, and the situation of ‘price up transaction even’ may continue until the market conditions are clear. Hong Kong Property recorded a total of 8 transactions on the weekend, down 33% weekly from about 12 cases on the previous weekend.
Ricacorp recorded 7 transactions among the ten leading housing estates, which was still in low level although it rose by 1 or 17% per week. President Liao Weiqiang says, potential buyers are focus on the first hand property market because of the lack houses and the tough prices in the second hand property market, plus with the influence of Sino-US trade war, so the transaction volume goes slightly up and down in a low level. He believes, although the Sino-US trade war situation is uncertain, buyers and sellers are still optimistic about the market outlook, so it is believed that the second-hand trading will regain momentum when the external atmosphere improves.
There were 75 transactions on two days in the first hand property market.
The second-hand trading is dull, as well as in the first hand property market. Under the external economic fluctuations, and the lack of new houses available for sale, there were only about 75 transactions made in the past two days, which is similar to last week, while it was obviously inferior compared with the boom market when nearly 1,200 transactions made on one weekend at the beginning of May. In the first-hand transaction yesterday, SHKP’s CULLINAN WEST on top of Nam Cheong Station was the most popular, which recently revised the price list and arranged 13 houses for sale, and it is reported 12 among were finally sold.
On the other hand, Ka Wah’s K.CITY in Kai Tak put on sale the second-round of parking spaces yesterday, with all 31 residential parking spaces being sold on the same day, taking in HKD98.176 million, and the average price was HKD3.158 million, besides market source pointed some expensive parking space was up to HKD3.5 million. Together with the first round of sales, the project has sold 121 residential parking spaces, taking in a total of more than HKD383 million.
