Hong Kong’s property deals slipped slightly in November after two months of gains, government data showed, with analysts warning of a deeper pullback this month as the Christmas holidays along with deferred launches of new homes following the deadly fire in Tai Po weigh on sentiment.
Sales of new and lived-in homes, office units, shops, car parking spaces and industrial properties dipped 1 per cent to 7,121 from 7,190 in October, according to the Land Registry. The total value of deals edged up 0.9 per cent to HK$58.4 billion (US$7.5 billion).
“The tragic fire at Wang Fuk Court in Tai Po has dampened public sentiment,” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties. “Developers have postponed new launches, and the secondary market has also seen a slight slowdown. As a result, overall registration figures are expected to decline in December.”
Following the blaze that killed at least 156 people in the northern New Territories, Sino Group and New World Development deferred sales of 150 units at One Park Place in Yau Tong and 63 units at the Austin Bohemian project in Yau Ma Tei, respectively.
“Both the primary and secondary markets have absorbed many attractive listings,” Chan said. “With developers delaying launches … and secondary market sellers either holding off or raising prices in response to improving sentiment, transaction volume has slowed.”
Residential sales in November dropped 2.2 per cent month on month to 5,588 units. Chan said overall property deals in December could fall further to 6,680, the lowest since the 6,462 units in August.
