Hong Kong's pre-owned housing market rips higher, as analysts warn of pause ahead

By Lam Ka-sing kasing.lam@scmp.com / https://www.scmp.com/property/hong-kong-china/article/3006367/hong-kongs-pre-owned-housing-market-rips-higher-analysts?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | April 22, 2019 6:52 PM SGT
The recent uptick in the secondary market where buyers kept snapping up homes costing less than HK$6 million (US$765,267) in major estates is expected to take a breather in coming weeks as prices near their previous peaks, analysts said.
"The recent rise in home prices has been quite fast, accumulating solid increases. Also, a number of bargains in the market have been snapped up and homeowners have kept asking prices firm," said Willy Liu, chief executive of Ricacorp Properties.
Ricacorp said it expected transaction volume among pre-owned homes to slow down in the coming couple of weeks.
But sales could rebound on positive news about the US-China trade war negotiations at the end of April.
Transaction data for the week ended April 14 revealed 102 sales, reflecting a 22.9 per cent jump from the prior week, according to activity at 35 major housing estates in Hong Kong, according to local agency Midland Realty.
Kingswood Villas in Tin Shui Wai and City One in Sha Tin, the most actively traded housing estates, particularly among first-time buyers in Hong Kong, have been the most active.
For example, Hong Kong's Centaline Property Agency recorded 28 transactions at Kingswood in April as of Monday, up 56 per cent month on month. Kingswood's average price per square foot rose to HK$11,000, based on transactions for the current month.
A shortfall of new property releases was a reason for the surge in buyer interest among pre-owned homes, such as these residential towers at Taikoo Shing, according to Centaline. Photo: SCMP
A flat of 448 sq ft at Kingswood's Sherwood Court sold for HK$5.85 million, or HK$13,058 per square foot, the highest for a two-bedroom layout at the estate since August 2018. The figure was just 2 per cent shy of the record price per square foot achieved in July last year.
City One had 21 transactions for the month to April 15....