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