Hong Kong’s home sales fizzle for a second weekend ahead of key policy address expected to boost supply of affordable homes
CK Asset and Sun Hung Kai Properties sold 65 of the 303 units on offer in two projects as of 9pm, an agent said
lacklustre result comes as Chief Executive Carrier Lam is due to
deliver her annual policy address on Wednesday and the index of
second-hand homes tumbled in August
Kong’s weekend home sales sputtered as buyers remained cautious ahead
of Chief Executive Carrie Lam Cheng Yuet-ngor’s annual policy address
next week, expected to increase land supply for affordable housing to
rein in one of the world’s most expensive property markets.
In the two projects that were on offer on Saturday, CK Asset Holdings sold 59 out of the 285 units at the Sea To Sky project at Lohas Park in Tseung Kwan O, while Sun Hung Kai Properties (SHKP) sold six out of the 18 flats at Mount Regency in Tuen Mun as of 9pm, according to property agent.
are signs that property buyers “are more and more reluctant to
negotiate” or settle for more over catalogue prices, which compels
developers to cut prices if they want to find willing buyers, the agent
The slump extends the disappointment of the September 26 weekend, when investors turned their backs on the biggest combined launch of 726 flats by six developers. CK Asset, SHKP, Henderson Land Developments and others managed to sell only 40 per cent of the flats on offer. At the Sea To Sky, only 68 of 285 apartments on offer found buyers.
continuous weekends of lacklustre sales underscores the challenges
faced by Hong Kong’s real estate market, as the city’s worst recession
on record gave buyers cause for pause, while an oversupply of flats
released before the coronavirus pandemic earlier in the year remains
mostly unsold. Hong Kong’s index of second-hand houses fell 1.1 per cent
in August, its biggest drop in six months, extending the declines to
4.1 per cent from the May 2019 record.
“Prices may stabilise in the short term, despite the decline in the housing price index,” agent said.
Prices at Sea To Sky started from HK$7.09 million (US$914,223), going up to HK$20.4 million for the biggest units, while Mount Regency ’s prices ranged between HK$5.9 million and HK$9.3 million.
When CK Asset began selling Sea To Sky in
June, it was the costliest launch of a property project in the Tseung
Kwan O neighbourhood, with prices starting from HK$6.4 million for a
two-bedroom flat measuring 471 sq ft, going up to HK$17.7 million for a
four-bedroom unit of 1,077 sq ft. Still, the project’s first batch was
mostly sold out, with 28 buyers submitting bids for every available
months on, and with several more developers jumping back into the
market with newly completed flats for sale, buyers have more to choose
from, driving some to pause to consider.
buyers remaining on the sidelines, the Hong Kong government may resort
to reclaiming more land to build affordable housing, a way to address
the chronic housing problem in the former British colony.
The city’s real-estate federation has proposed to reclaim three islands around Guishan
will accommodate around 800,000 residents, adding to the HK$624 billion
Lantau Tomorrow project that was approved last year. Lam is due to
address the public in her annual policy speech on Wednesday.
Kong is set to miss the annual target of land supply for a third
consecutive year in 2020 because of the lack of land plots available to
be developed, according to analysts. The government plans to supply
12,900 new private homes for the year through March 31 next year and
7,400 have been added so far.
(South China Morning Post)