Slow Start to the New Year: Only 5 Transactions in Top 10 Housing Estates, Lowest Since June 2024
The new year has begun with a subdued atmosphere in the property market. Over the weekend, Hong Kong's top 10 housing estates recorded only 5 transactions, matching last week's figures and marking the lowest level since late June 2024. Six of the estates saw no transactions at all, with only Taikoo Shing, Mei Foo Sun Chuen, Whampoa Garden, and Kingswood Villas reporting deals.
According to Louis Chan Wing-kit, the executive director of Centaline Property, the market has yet to see any positive news to kickstart the year. Many residents remain out of town for extended holidays, contributing to the overall sluggish atmosphere in the property market. Both primary and secondary transactions remain quiet as buyers adopt a wait-and-see approach, anticipating the inauguration of the new United States presidential administration and the Federal Reserve’s interest rate decision at the end of January. Chan predicts that transaction volume is unlikely to increase significantly in the short term, and the market will require more positive stimuli to gain momentum.
On Hong Kong Island, only Taikoo Shing recorded a transaction among the three major estates. So far this year, Taikoo Shing has seen 4 completed transactions, including one over the weekend. The most recent sale involved a high-floor unit in Marigold Mansion (Block 39) with a usable area of approximately 897 square feet. The unit, featuring three bedrooms and a suite, was originally listed at HK$14 million but sold for HK$13.58 million after a price reduction of HK$420,000. This translates to a price of HK$15,139 per square foot. The original owner purchased the unit in August 2016 for HK$14.1 million, leading to a paper loss of HK$520,000, or 3.7% over the eight years of ownership.
Meanwhile, estates such as South Horizons saw no transactions due to the continued holiday lull. Viewing activities in the area remain quiet, and no deals were recorded over the weekend, leaving January without any completed transactions so far.
In Kowloon, Whampoa Garden reported one transaction over the weekend. The deal involved a low-floor unit in Block 6 of Phase 12, with a usable area of 797 square feet. The unit, which features three bedrooms, a suite, and a storage room, was initially listed at HK$9 million but sold for HK$8 million after a HK$1 million price reduction, equating to a price of HK$10,038 per square foot.
Other estates, such as Metro City, saw no transactions. With the Lunar New Year approaching later this month, coupled with the Federal Reserve’s upcoming interest rate decision, many buyers are holding off on decisions, waiting for further clarity. Additionally, the launch of new developments in the area is expected to attract market attention, potentially slowing down transactions in the second-hand market.
January is traditionally a quiet month for the property market in the New Territories. In Tung Chung, viewing activity and transactions have been particularly sluggish. Caribbean Coast recorded only one transaction on New Year’s Day, with no additional deals since.