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HONG KONG: Just 157 flats were offered for sale by developers last month, the lowest total in eight months. But analysts expect the number of new releases to pick up again in the coming weeks.
Developers slowed their releases as the housing market fell under a cloud of uncertainty over the outlook for the global economy and volatile stock markets, according to Hong Kong Property Services (Agency).
The flats offered last month were 76.5% below the 667 launched in July. “It was the lowest since December last year,” the agency said.
In comparison, developers were active in April with the release of 1,542 flats, the highest figure this year.
Since the government began rolling out measures aimed at curbing demand and price growth in the property market, including special stamp duties in November last year and tightened mortgage lending in June last year, sales and home prices have fallen.
Patrick Chow Moon-kit, the head of research at Ricacorp Properties, said 4,727 flats were sold in the secondary market last month for HK$19.04 billion (RM7.2 billion). Both figures, which reflected the market condition of about four weeks ago, were the lowest in about 30 months.
Because of the mortgage crackdown, secondary sales in the luxury market also slowed last month, with 87 flats valued at HK$20 million or above sold. In July, the figure was 116 flats. Sales of properties valued at between HK$7 million and HK$10 million fell 20% to 185 deals.
Ricacorp expects sales in the secondary market to improve this month as buyers have started discounting the negative news. Chow said sales would rebound to the 6,000-flat level, in tandem with the improvement in the primary market.
The government has issued pre-sale consent to two projects in Tseung Kwan O — La Splendeur and the Wings — which are expected to be launched this month.
La Splendeur, which is developed by Cheung Kong (Holdings), Nan Fung Development and MTR Corp, has 1,168 flats. The Wings, developed by Sun Hung Kai Properties and the MTR, has 1,012.
Other projects expected to come on the market soon include the 120-flat One Mayfair of Sino Land in Kowloon Tong and Nan Fung’s Winfield Building Block in Happy Valley. — South China Morning Post
