Fixed-rate mortgage plan fails to stir market
The property market is still struggling to regain its footing amid the coronavirus outbreak, as a property agency recorded 22 secondary transactions at ten major housing estates over the past weekend, down by 4.3 percent week-on-week.
This came after Financial Secretary Paul Chan Mo-po unveiled a fixed-rate mortgage loans pilot scheme in the budget speech.
But it was the second consecutive weekend that the number of secondary transactions exceeded 20, according to the agency.
Some homeowners are willing to cut asking prices amid economic uncertainties, which has boosted secondary transactions, another agent said.
An agent from the first agency firm expects developers to step up launching projects in the primary market this month.
In Tin Shui Wai, a 549-sq-ft flat at Kingswood Villas changed hands for HK$5.6 million, or HK$10,200 per sq ft, after HK$700,000 was cut from the original asking price.
In Tai Koo Shing, a 582-sq-ft flat at fetched HK$11.88 million, or HK$20,412 per sq ft, after HK$420,000 was slashed from the initial asking price.
Kennedy Town saw a 464-sq-ft flat at Cayman Rise sold for HK$10.2 million, or HK$20,819 per sq ft, after HK$540,000 was rubbed off from the first asking price.
And in the Mid-Levels, a three-bedroom flat at The Grand Panorama changed hands for HK$20.38 million, or HK$20,967 per sq ft, after HK$1.62 million was cut from the original asking price.
In the Grade-A office market, another property agency firm recorded 5 transactions at 50 major Grade-A offices in February, up by 66 percent month-on-month, as landlords are willing to slash asking prices amid the escalating coronavirus outbreak.
The agent expects more price cuts in the future as the coronavirus , which continues to spread across the world, could be a new black swan for the global economy.
The vacancy rate of Grade-A offices in Central surged to a five-year high of 4 percent in January, according to an international property consultancy firm.
The property consultancy firm said rents of Grade-A offices in Central dropped 1.1 percent month-on-month to HK$120 per sq ft.
They also said that some companies are postponing leases over coronavirus concerns.
(The Standard)
