Prime-flat sales still satisfactory, agents say

HONG KONG: Despite recent mortgage rate rises, sales of new homes at some developments in Hong Kong remain satisfactory, agents say. Seventy-four new flats were sold last weekend, up from 57 on May 21 and 22.

Sun Hung Kai Properties launched its i.UniQ Residence in Shau Kei Wan last week, and sold all 117 flats released, generating about HK$800 million (RM310.43 million) at an average of HK$13,500 per square foot. Some 20% of buyers were mainlanders, Samsung Securities (Asia) said. Last Saturday, Kerry Properties launched a batch including 50 flats at Lions Rise in Wong Tai Sin at an average HK$11,263 per square foot. The developer sold 43 flats at the weekend.

In the secondary market, according to agency Ricacorp Properties, 255 deals were done during the week from May 23 to 29 in the 50 housing estates that it monitors. That was about 5% below the sales volume achieved a week earlier.

According to the Centa-City Index, the average property price rose 0.74% week on week over the period May 16-22, to its highest level since October 1997. A positive result from a land sale at Stubbs Road, Mid-Levels, and higher-than-expected average selling prices at i.UniQ Residence raised the Hong Kong Island sub-index by 2.85% week on week. Average prices in Kowloon and New Territories East rose 0.74% and 0.3% week on week respectively. But New Territories West fell 0.88%.

Lee Wee Liat, head of regional research at Samsung Securities (Asia), said the slight rebound in transaction volume would be short-lived because of rising mortgage rates. — SCMP