Few Hong Kong Apartments Sold in Tuen Mun Project

The protests against the government have made potential buyers of Hong Kong apartments cautious. As a result only a few flats from the new project at Tuen Mun were sold. Also recent data indicated that lived-in homes are being sold at a lower price. Similarly, Wing Tai Properties had developed the Oma Oma project with 113 Hong Kong apartments, yet sources indicate that only 22 units were sold on Sunday. Midland Realty’s chief executive Sammy Po confirmed that these were the worst sales in the last two months. He said that buyers are rethinking purchases because they worry that prices will reduce further due to unfavourable market conditions. He said that developers will have to offer low prices, for quicker sales.

Analysts claim that buyers are becoming more choosy and careful. One of the reason why sales were low at the Oma Oma property was that there is no MTR station in the vicinity. In contrast, a week earlier, many Hong Kong apartments were sold in the Marini Project at Tseung Kwan O, which is close to a MTR station. Additionally the Leading Index Centa city which tracks property sales in one hundred Hong Kong housing estates, also indicated that prices for homes which were lived-in had fallen by 1.34 percent. Wong Leung-sing from Centaline Property agency indicated that this was the sharpest decline in rates in the last twelve weeks.

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Leung-sing claimed that Hong Kong apartment prices have declined due to the protests and also the trade war between the US and China and protests. These factors make people think twice before investing a large amount in property, since prices could decline further. However, market conditions could improve when the the chief executive of Hong Kong Carrie Lam Yuet-ngor declared that the bill allowing extraditions to the mainland would be withdrawn. Though some individuals selling their homes raised their prices after the announcement, experts claim that it will not boost home sales. In fact, even prices of properties near MTR stations are reduced by developers who are unable to sell homes.

After a period of five months, the prices of Hong Kong apartments started increasing in January 2019. However, after the extradition bill was announced in June, the property prices declined. Experts expect the home sales to remain steady in September. In an attempt to increase the sales of Hong Kong apartments, Wing-Tai Properties claimed that it would offer mortgage loans of ninety percent of the value of the homes for flat priced at HK$6 million. Additionally only interest would be paid for 728 days after the sale was finalized. Other developers like Wheelock Properties are increasing the number of flats listed for sale, to maximize sales in the current real estate market conditions.