Activity in the secondary home market remains subdued, with just a few sales recorded in major housing estates.
Centaline Property Agency reported three deals over the weekend at the 10 major housing estates that it tracks, down from five last week, a 20-week low since lunar new year in February. The three sales were at Kingswood Villa in Tin Shui Wai.
The US Federal Reserve's rate increase of 0.25 percent, together with the market's expectation of a new round of tightening measures to be imposed by the new government, affected the move of some of the buyers and sellers in the property market, said Louis Chan Wing-kit, Centaline Property Asia- Pacific's residential chief executive.
At the same time, Midland Realty reported five transactions over the weekend at the 10 major housing estates that it monitors.
No transactions were recorded at eight major estates - Taikoo Shing and Kornhill in Quarry Bay, South Horizons in Ap Lei Chau, Laguna City in Lam Tin, Whampoa Garden in Hung Hom, Metro City in Tseung Kwan O, Mei Foo Sun Chuen in Lai Chi Kwok and Tsuen Wan Centre.
The launch of new projects has diverted purchasing power from the secondary market to the primary market, as some of the new units would be priced at just about HK$2 million to attract buyers, said Sammy Po Siu-ming, residential chief executive of Midland Realty.
In the primary market, Way Creation's Cheung Sha Wan project AVA 61 launched its first price list for 57 flats, which are sized from 150 square feet studios to 232-sq-ft one- bedroom homes.
The first batch of flats are priced from about HK$3 million to HK$5.2 million, or HK$19,699 to HK$24,422 per saleable square foot.
The completion of the latest micro- flat project in Kowloon is expected in March 2020, which will provide a total of 138 units in a single-story building on Tai Po Road. The project is said to be priced 20 percent higher than other recent projects nearby. For example, a 266 ssf unit at High Point, also on Tai Po Road in Cheung Sha Wan, was sold for HK$4.23 million, or HK$15,902 per ssf last month, according to Ricacorp Properties.
The Ascent, on Shun Ning Road in Cheung Sha Wan, has an average saleable-sq-ft price of HK$15,800. The project comprises studio flats to two bedroom homes, with sizes ranging from 276 to 458 per ssf.
The project was jointly developed by Regal Hotels International, Paliburg Holdings and the Urban Renewal Authority, and is expected to be completed in May next year.