Ho Man Tin Hong Kong

HONG KONG (Oct 28): House prices here are not expected to drop significantly in the near term, said Knight Frank in a recent report.

According to the Land Registry, residential sales rebounded by 9.4% from August to September, as stated in the global real estate services firm’s “Hong Kong Monthly Property Market Report”.

First-hand transactions jumped 110% while secondary sales declined 15% month-on-month.

Ho Man Tin saw several luxury residential sales transactions, including a high floor unit at Ultima Phase 1 for HK$100.5 million (RM55.23 million) and 5 to 7 Ho Man Tin Street for HK$628.0 million.

 A number of luxury residential leasing transactions were witnessed mainly in Island South with the leasing of houses on South Bay Road and Deep Water Bay Road for HK$185,000 and HK$178,000 worth of rent per month respectively.

Out of the five major luxury residential districts, Island South, Mid-Levels and Pokfulam were the three to retain stable residential rents while those for Jardine’s Lookout/Happy Valley increased by 1% and rents for the Peak declined by 2%.

However, luxury residential prices declined with a 4.2% decrease in Island South, a 3.4% decrease in Pokfulam and a 2.1% decrease in Mid-Levels. Jardine’s Lookout/Happy Valley was the only one to observe a 0.4% increase in its residential prices for the month.

Both demand and supply remained robust in the primary market.

For example, 110 units in Century Link in Tung Chung and more than 200 flats in Upper East in Hung Hom proved popular within the market and were sold within a few hours.

In contrast, the secondary market remained subdued due to the recent stock market volatility, a potential interest-rate rise in the US and fierce competition from primary developments.

Also, stamp duty policies will remain in place in the near term.

Market views are not expecting a drastic interest-rate hike this year, though a minor one would resist any significant default risk.

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