Covid, rising rates and the economy weigh on the secondary market

Themis Qi

Worries over rising interest rates, the economy and the Covid pandemic, as well as competition from the primary market sent weekend transactions in 10 major housing estates falling to a four-week low.

Data from real estate agencies showed that only nine transactions were recorded in the 10 developments monitored over the past weekend, down 55% from the 20 transactions recorded the previous weekend.

The number of no-deal estates also rose to six in the past two days, including Kornhill Gardens in Quarry Bay, South Horizons in Ap Lei Chau, Mei Foo Sun Chuen, City One Shatin, Metro City in Tseung Kwan O and Caribbean Coast. in Tung Chung.

Louis Chan Wing-kit, Asia-Pacific vice president of Centaline’s residential division, said home viewings had plummeted with new daily Covid infections surpassing the 8,000 mark in the city and that it was possible that the Hong Kong government is tightening social distancing curbs yet again, which would further impact viewings.

Additionally, potential buyers in the secondary market were adopting a wait-and-see policy amid rising interest rates, while developers were attracting more home buyers with low prices in the primary market.

However, the general manager of Midland Realty’s residential division, Sammy Po Siu-ming, said secondary market transactions would rebound if sellers continued to cut their asking prices, even as new home offerings continued to dominate the market. short-term market.

Meanwhile, the primary market continued to sizzle with Sun Hung Kai Properties (0016) revealing it had sold 1,538 homes in Novo Land in Tuen Mun and taken in a total of HK$9.4 billion so far. .

After selling all 170 apartments in the price lists and three houses through tender for a total of HK$1.03 billion on Saturday, the developer has liquidated 95% of Novo Land’s Phase 1 stock since launch sales at the end of July.

SHKP said it has applied for a pre-sale agreement for Phase 2B of the project to offer 729 apartments, most of which are one- and two-bedroom units.

Andy Chan Hon-lun, managing director of the developer’s real estate agency, said sales of Phase 2 should be launched by the end of this year.

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