Hong-Kong Pre-Owned Home Sales Rally To Eight-Year High
Fueled by a flurry of moves spurred on by 'panicked' buying, Hong Kong's pre-owned homes proved not expensive at all to some investors. Established housing estates saw some of their properties sell for what had been deemed 'record' prices, according to SCMP. Sammy Po of Midland Realty said that this was a reaction from buyers who were afraid of 'missing the boat' of relatively cheaper prices.
Louis Chan Wing-kit, the Asia-Pacific vice chairman for residential at property firm Centaline Property, said that this 'strong' sentiment from the buying public and property investors initially started in the primary market. It has since then spilled into the secondary one, where transactions among the many housing estates were done at record-breaking home prices.
The report included one fine example, where a 916 sq ft unit from the Tierra Verde property above the Tsing Yi Station went for HKS 30 million. Converted per sq ft, the amount comes to HKS 32,751. It was a new record sale for the area, according to agents who knew the historical value of units in the said region.
The return of the bull market tests Hong Kong's resiliency in bringing market prices under control. Yahoo! Philippines reported that prices were at a 2.9 percent high from the previous month, representing the fastest market climb in three years. The city's government, however, is given the unenviable task of trying to create average pricing.
The pricing index in March was at a 377.5 rating, received from the Rating and Valuation Department data. Since the first quarter of 2019, prices have risen to 5.04 percent due to a three-month-long rally. This was the best it had been after suffering a decline of 9.2 percent that happened from August up to December last year.
While the overall sentiments of buyers have improved, Hong Kong chief executive Carrie Lam Cheng Yuet-ngor had her reservations about the trend, expressing concern that it would have negative after-effects. That would be the affordability of these homes, citing monetary policies have helped the 'cooling' property market of the region come to life.
While the market executives have reservations about these prices, the fact remained that it was still the best performance of the property market. The property market had outperformed the wider market by a big margin, with home prices for pre-owned homes jumping to the aforementioned rate.