Home sales surge 57% post-CE's first policy address

It's an impressive 226 sold units.

According to Maybank Kim Eng, over the first weekend after the Chief Executive (CE)’s first policy address last Wednesday, 226 primary residential units were sold, representing a 57% WoW jump from previous week’s 144 transactions. 

The Wings II and The Reach dominated the list with 125 and 75 units sold. The former SHK Properties (16)’ project which was launched 2 weeks ago has accumulated 320 transactions (41% of total available units of 782) while ASP held steadily at above HKD10,000 psf of GFA.

A total HKD3.5b of proceeds were reaped from the Tseung Kwan O project. Smaller-sized units (2 bedroom units) were the focus of Henderson Land (12)/New World Dev (17)’s Yuen Long project, The Reach, which has accumulated 830 transactions (32% of total 2,580 units).

Here's more from Maybank Kim Eng:

Separately, according to local press, secondary transaction also reached a 8-month high with top 10 secondary estates recording 46 unit transactions over the weekend, a 44% WoW hike.

Purchasing power from potential buyers was being released 3 months after the introduction of Buyer’s Stamp Duty/extension of Special Stamp Duty in end-October, and no significant tightening policies were being introduced to the property market during the CE’s first policy address.

While we believe that the strong physical property sentiment to sustain until Chinese New Year holiday in mid-February, developers will continue to adopt a slight aggressive stance in launching and pricing their projects.

Notable new launches in short-term will be Residence 88 and Imperial Kennedy in Yuen Long and Western District, respectively (both by SHK Properties), and Sino Land (83)’s The Avery and The Graces Providence Bay (Kowloon City and Tai Po).

We expect that local developers will continue to outperform market with strong property sales and improved sentiment.