Hong Kong’s primary home transactions down by 7 from previous week

Check out these properties sold and reserved over the weekend.

According to Maybank Kim Eng, weekend primary residential sales retreated further to 30 transactions over the weekend, versus previous week’s 37. The Reach dominated the list with 25 unit transactions over the weekend.

Here’s more from Maybank Kim Eng:

Remaining units of Sino Land’s Providence Peak and Cheung Kong’s One West Kowloon were sold. On new launch front, two major projects High Place and The Wings II attracted market’s attention over the weekend, while both developments will be launched this week at the soonest.

Single block project High Place (Kowloon City), developed by Henderson Land, has launched 46 out of its 76 total available units, with price of over HKD21,000 psf of SFA. Market rumour suggested that 25 units of the project have been reserved.

The Wings II (Tseung Kwan O, developed by SHK Properties), received 400 ‘reservations’ from potential buyers, and the price list of first batch of 50 units (all 4-bedroom units with GFA of 1,148-1,250 sq ft of GFA) was published last Friday night. The ASP of HKD10,097-14,620 psf of GFA is lower than the developer’s previous guidance of HKD15k. Over 20,000 people flow to show flat was recorded since Friday night.

Despite good responses from ‘reservations’ received by the 2 new launches, the asking price of first batch of The Wings II is lower than previous
guidance, and is similar to the secondary price of the project’s first phase, The Wings (ASP ranged from HKD11k-12.3k psf of GFA).

As such, we believe that the market sentiment will be affected slightly. Coupled with the potential policy risk towards the Chief Executive first Policy Address on January 16th we keep our underperforming stance to local developer sector.