Primary home market stuck in the doldrums

Developers only sold 30 units over the weekend.

According to Nomura, the primary market sales remained subdued over the past weekend with only 30 units cleared by developers. HLD/NWD’s The Reach in Yuen Long remained the focus of the market, it said.

Here's more from Nomura

Last week, the developers launched the first batch of 60 units post the introduction of the extended Special Stamp Duty (SSD) and 15% BSD. The average selling price of the new batch is HKD7,121psf, marginally lower than previous batches’ prices.

19 units were cleared over the past weekend. So far, developers have launched 668 units (25.9% of total 2,580 units) with an average selling price of HKID7,225psf. HKR cleared 4 units at Amalfi in Discovery Bay this weekend. A few transactions with non-local buyers willing to pay 15% BSD were noted in the primary market.

Separately, with the two recent demand-side measures cooling home buying interest, developers have turned to selling car parks. Chinachem has put around 600 car parks in the New Territories on the market, while CK and Wheelock have also made more car parks available for sale. Response has been quick with many of the car parks being snapped up by investors and users alike.

Upcoming launches to watch include: SHKP’s The Wings II (around 780 units), Nan Fung/Sino/K. Wah’s The Graces (193 units) in Tai Po, Cheung Kong’s One West Kowloon (286 units) at Lai Chi Kok and HLD’s High Point (138 units) at Sham Shui Po.

In the secondary market, transaction volume continued to decline. The Midland 35 housing estates index dropped by as much as 50% w-w to 59 transactions. Over the past weekend, estate agents reported that the weekend flat-viewing numbers fell for the fourth week. Sellers are now willing to lower the asking price, according to the feedback from estate agents. While buying interest has returned to the sidelines, leasing interest has picked up. Estate agents reported both a pick up in flats available for lease as well as tenant leasing interest.