Hong Kong's weekend primary home sales climbed 30%

Check out the winning developers.

According to Maybank Kim Eng, primary residential market recorded 43 unit transactions over the weekend, representing a 30% WoW hike but still below previous Easter long weekend of 97 sales. 

Here's more:

The Reach in Yuen Long, developed by Henderson Land (12) and New World Dev (17) recorded 18 transactions, representing a 1.6x WoW jump from previous week’s 7 sales.

The development’s low entry price and low ASP position continue to attract genuine user-demand from first-time home buyers. On the secondary market, selected sellers have chosen to cut their asking price for 6-8% to stimulate transactions.

According to Ming Pao, 15 unit transactions were being recorded in Kingswood Villas in Tin Shui Wai, a 6.5x WoW hike with price drops of 10%. The weekly sales also set a 59-week record high for the estate.

The strong rebound also supported a 67% WoW growth in top 10 secondary estates to 20 units last weekend. 

Implication: Another weak weekend dominated by remaining unit sales, dragged by developers’ prudent approach in launching and pricing new projects and existing developments.

Coupled with the largest WoW drop since Nov 25th 2012 in Centacity Leading Index (-0.96% WoW, a 6-week low and 3rd consecutive week’s drop) to 121.83, we expect that the local developers’ sentiment will continue be weak and underperform the broad market.