Secondary demand drives residential market as March sales ease

Secondary market absorbed most demand as primary sales lagged.

Hong Kong residential transactions fell in March as monthly activity eased from February, whilst first quarter (Q1) volumes held at their strongest level since the third quarter (Q3) of 2021, according to JLL.

Total residential sales and purchase transactions reached 6,316 units in March, down 353 units from the previous month. Secondary market transactions accounted for 4,873 units, whilst primary sales totalled 1,443 units.

Despite the monthly decline, total residential transactions in Q1 reached 18,654 units, the highest quarterly total since Q3 2021, when volumes reached 18,969 units. Mass residential capital values remained flat month-on-month in March.

The Lands Department disclosed unsuccessful bids for Shau Kei Wan Inland Lot No. 860 at Shau Kei Wan Main Street East, which was awarded in February.

The second-highest bid stood at about $1.27b, 9.1% below the winning bid of around $1.38b, indicating a gap in bid pricing, JLL said.

In the primary market, LA MIRABELLE I in Kennedy Town sold all 254 units in its first-round launch, recording an average price of $14,850 to $16,490 per square foot (psf) of saleable area.

Market sources indicated that about 30% of buyers purchased units for long-term investment purposes.

In the luxury segment, a unit at Mont Verra Tower 5 in Shek Kip Mei sold for $230.0m, or $51,305 psf of saleable area.

Major transactions also included units at Ultima Phase 01 Tower 06 and Legacy Phase 02 Tower 01, priced at $215.9m and $164.7m respectively.

Residential sales and purchase value totalled $55.2b in March.