Home sales in Hong Kong rise slowly in June
Home sales in Hong Kong rise slowly in June
A shortage of buyers for both bargain finds and luxury digs
Due to a robust showing in the new homes market, residential sales in Hong Kong managed 4,620 units in June, a month-on-month volume increase of 0.7 percent, data from the Land Registry showed.
Among other new residential developments, Park Yoho Venezia turned over 90 percent of units within hours of launching in June and oversubscribed by the end of the month.
Hong Kong may see a trend of oversubscribed developments play out for a period of time, as developers continue to dangle highly competitive mortgage plans and massive discounts, Knight Frank reported. Park Yoho Venezia made headlines last month after offering a record 120 percent loan-to-value mortgage scheme.
More: Hong Kong apartment claims ‘most expensive’ title in Asia
Bargain-hunting homebuyers can be credited for a recent stabilisation in property prices, although Knight Frank expects home values to drop by 5 to 10 percent over the year, with mass residential prices sliding down 10 percent.
Luxury-seeking buyers now seem to want in on the action, despite a reported shortage of foreign financiers coming in with generous corporate packages. Severn Villa at The Peak, for example, recently saw a top-floor unit sell for a record HKD232 million (USD29.9 million).
Next quarter, the Hong Kong government will tender seven residential sites, bringing more than 4,800 flats into the private housing supply. The sites consist of Beacon Hill, Kai Tak, Kwun Tong, Yuen Long, and Sha Tin, plus two others in Tuen Mun.
The number of homes pending pre-sale consent has risen to 14,526 units, an eight-month peak, according to the Lands Department.
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Source: Property Report