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Homebuyers and Investors Return Despite
Uncertain Economy
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April 2009 |
Buyers braved the continued uncertain
economic outlook last month to drive sales
higher in both the primary and secondary
markets. Agents said the increase in
sales volume was triggered by a growing
belief among buyers that although prices
might continue to fall modestly, the end
might be in sight to the steep trend decline
in property values of the past few months.
In addition to those buying for own use,
there was evidence that long-term investors
had also begun re-entering the market, they
said.
Centaline Property Agency said 6,354
property deals were closed between March 1
and 25, including sales of residential,
commercial and office units, as well as car
parks. It forecast that when the
official data for the full month was
released later this week by the Land
Registry, sales could breach a level of
7,800 deals to hit an eight-month high.
In February, there were 5,043 transactions.
Purchases of new flats rose to 484 in the
first 25 days of last month, compared with
214 transactions for the whole of February.
Centaline said final data would show about
650 deals transacted for last month.
In the secondary market, the number of deals
rose from February's 3,793 to 4,503 in the
first 25 days of March. The property agent
believes the full count for the month would
be about 5,300.
Secondary market sales in the 50 key housing
estates monitored by Ricacorp Properties
rose to 417 last week - the highest weekly
outcome in the past 43 weeks. Patrick
Chow Moon-kit, the head of Ricacorp
Properties' research team, said data showed
that long-term investors had now entered the
market.
"In my rough estimation, 40 per cent of
buyers did not buy for own use," Mr Chow
said. "These cash-rich buyers have
reduced investments in stocks and are now
shifting some money into the property market
for long-term investment."
Cheung Kong (Holdings) chairman Li Ka-Shing
said last week the time was now right to
consider buying property if the buyers were
financially comfortable since the financial
environment had improved compared with a few
months ago.
Mr Chow said secondary market deals often
tailed off when developers launched new
projects. However, both markets had
performed well last month. Three new
developments were launched last month,
providing 923 units for sale compared with
756 in February and 268 in January,
according to Midland Realty.
Centaline said prices in some leading
housing estates were showing signs of
picking up compared with low points reached
in December last year. For example,
prices in Taikoo Shing averaged HK$6,017 per
square foot last month, up 9.9 per cent from
the end of last year, while prices in Mei
Foo Sun Chuen rose 9.6 per cent to HK$3,394
per square foot in the past three months.
Source: South
China Morning Post |
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