3 June 2014 - Recent sales of smaller second-hand units has increased despite the signs of decline in the luxury market. One example is last week’s sale of a 355 sqft unit in Serenity Park in Tai Po, which sold for $3.55 million, breaking the previous record price of $3.4 million for a similar unit sold earlier this year. The SCMP reported that the head of research at Ricacorp has revised his forecasts for home prices in 2014, “from a drop of as much as 15 per cent to an increase of 5 per cent”.
Kingswood Villas in Tin Shui Wai are another example of units that are facing growing demand, with a Centaline branch manager quoted as stating "the minimum price for two-bedroom flats there was HK$2.4 million in March . But now you have to pay at least HK$2.65 million.”
The suggested cause is the decline in owners willing to sell their property, following the special stamp duty measures which could lead to up to a 20 per cent duty if units are resold quickly, leading more owners to opt to lease their unit to tenants rather than sell. This shortage of units available for sale may be causing prices to rise in selected areas of the Hong Kong property market.
Prices of luxury units are still declining, with concerns about rising interest rates and a slowdown in the mainland Chinese economy.