Hong Kong’s weekend home sales dipped 5%

Check out which property lead the pack with 100 recorded transactions.

According to Maybank Kim Eng, over 210 primary residential property units were being sold over the weekend, a slight 5% WoW drop but the figure was above 200 three weeks in a row. 

Here’s more:

The Wings II (Tseung Kwan O) by SHK Properties (16, BUY) continue to lead the list and recorded 100 transactions. The project reaped HKD6b of proceeds since launched in mid-January with over 600 out of total 782 units sold. 

Kowloon Development (34)’s single block project, Upper West (Tai Kok Tsui) recorded a strong 54 unit transactions over the weekend and a special unit of the project set the highest ASP (HKD19,410 psf of GFA) record in the district. Market rumour suggested that Residence 88 in Yuen Long (352 units) by SHKP will be launched ahead of Chinese New Year holiday. 

Implication: The strong physical market sentiment sustained after Chief Executive’s policy address announced on January 16th. We believe that the purchasing power, being consolidated after the introduction of Buyer’s Stamp Duty in end-October, will continued be released in short-run.

Together with satisfactory tender results recently (e.g. Wheelock (20) winning Tuen Mun site with higher-than-expected price), we believe that will help in local developer sector sentiment. 

Action: Reiterate BUY on SHK Properties with new launch pipeline. The developer is trading at 34% discount to our RNAV of HKD190.2 per share.