JoannaWong

journalist – writer – traveler

Second-hand Property Market Trading Hits Record Low

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Telford Gardens in Kowloon Bay, one of the housing complexes where  the second-hand flats market has been quiet. 

20 Sept 2015

The second-hand property transaction in September hit record low as supply of low price flats flood the first-hand market.

Sammy Po Siu-ming, the chief executive at Midland Realty’s residential property department said  the second-hand trading scene is quiet compared with the same period in 2014. He believed market fluctuations and an increase in the supply of properties in the  first-hand market dampened incentive in second-hand trading.

Professor Edward Yiu Chung-yim, associate professor of Geography and Resource Management at the Chinese University of Hong Kong said the government’s anti-speculation measures and buyers’ expectation of a drop in prices  also accounted for the dip in second-hand trading figures.

A number of developers including Sun Hung Kei and Cheung Kong Holding have been putting small-sized flats at lower prices on the market in recent month to compete with the second-hand market. Professor Yiu said these flats are often cheaper than second-hand units in the same  district, for example in  Tseung Kwan O and  the New Territories.

“In order to gain publicity, developers would set their prices lower or closer to those in the second-hand market price,”  Mr Po explained.

He predicts that the trading volume in the next quarter will remain low with an average of 2,500 to 3,000 monthly.

Jacky Lau Ka-yu, a potential investor, said he would opt for the cheaper first-hand flats. He is also delaying the sale of his flat and considering renting instead.

“There is no luck in investing in the second-hand property market on a short-term basis these days,” Lau said.

Following the U.S. Federal Reserve’s  announcement that an anticipated nterest rate hike will not happen for now, the property market is adopting  a wait-and-see attitude until the next review.

Mr. Po said Hong Kong government policies in recent years has reduced the supply of second-hand flats.

“The prices of small- and medium-size second hand flats has risen  significantly in recent years. There is a huge demand from buyers but  property owners tend not to sell.”

But he is hopeful of market prospect. “The property market will develop stably.”

_

Reporting:  Jackson Ho

Writing: Crystal Tse

Photography: Joanna Wong

https://hkbujournalism.wordpress.com/category/business/

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