Since the second half of the year, the property market is still sluggish, and the sales prices of the first-hand properties have been decreasing. However, the decline sales prices are still not attractive to the users, so it does not generate satisfactory results to the developers. In response to this reality, the developer of "SkyeHi" in Tuen Mun had significantly reduced the sales price of the remaining thirty-three units by 47% to Hk $ 9800 per square foot (psf). In consequence, all the units were sold out at the first date of public sale.
Two months ago, the re-sell sale price of the luxury house “The Corniche” in Ap Lei Chau was reduced by 40% from HK$45,000 to HK$25,000 psf. The revised price was slightly higher than the accommodation value of HK$22,000 psf. Despite this, the transaction records of the project did not yield a satisfactory outcome.
In terms of second-hand properties, the weekly transaction volume of the top ten housing estates has dropped to less than 10 transactions. Until now, the transaction price of second-hand properties has been lowered by 25% from the peak level, but the transaction volume is still very low. It indicates that the buyers are still unsatisfied with the current price reduction. Therefore, landlords who want to sell their properties must reduce 10% more in order to attract users to the market.
Recently, Sun Hung Kai Properties acquired a residential site in Sha Tin at HK $3,952 psf, which was 55% lower than that of a residential site in the same district two years ago.
At present, the sales price of the new projects has to be reduced by 50%, and the accepted land prices by the government tenders has also been lowered by 55% to attract users and developers to the market. Nevertheless, the second-hand properties prices, which have only fallen by 25%, are obviously higher than the market value.
Thus, second-hand owners must reduce the listing prices so that it can attract the potential buyers. Therefore, it is expected that a large number of second-hand properties’ sellers will lower the sales price to boost the transactions, and any user who is interested in entering the market can take advantage of this situation to bargain with the landlord by delivering an ultra-low price’s offer.
