According to Ricacorp Properties, the research department head Chen Haichao stated that market expectations of a high probability of a Federal Reserve rate hike next month have disrupted buyers' plans to enter the market, further widening the price gap between buyers and sellers.
Although some owners have already lowered their asking prices, under the shadow of a rate hike, most buyers are likely to adopt a wait-and-see approach, biding their time for a more suitable opportunity to enter the market.
Based on data estimates from Ricacorp Properties' research department, a total of 1,190 groups of clients across 50 benchmark estates in Hong Kong scheduled weekend property viewing appointments, a slight decline of 1.2% compared to 1,205 groups the previous weekend, falling below the 1,200-group level.
By region, weekend property viewing appointment volumes for benchmark estates across Hong Kong Island, Kowloon, and the New Territories all recorded declines. Among them, the 8 benchmark estates on Hong Kong Island recorded 190 groups of clients with viewing appointments this weekend, down 2.6% week-on-week.
Ricacorp Properties' assistant sales director for the Leigh-on-Sea and Heng Fa Chuen areas, Liu Xinwen, stated that Leigh-on-Sea has yet to record any secondary market transactions this month, with the district's market conditions remaining quiet.
He noted that the market perceives a high probability of a US rate hike, which has dampened buyers' sentiment in the district. Additionally, several first-hand urban projects continue to be launched to attract buyers, diverting attention from the secondary market and putting pressure on viewing appointment volumes in the area.
He added that secondary market owners in the district have begun to loosen their bargaining room, but their prices still differ from what buyers consider ideal, leaving both sides in a standoff.
In Kowloon, 21 benchmark estates recorded 415 groups of clients with viewing appointments this weekend, down 1.2% week-on-week.
Ricacorp Properties' chief co-director of the Metro City branch, Deng Darong, stated that as of mid-month, Metro City has recorded three secondary transactions this month. Although this matches the full-month transaction volume of the previous month, it remains unsatisfactory.
He noted that secondary market owners have been firm on their asking prices without significant reductions, while secondary buyers have had their attention diverted by new urban projects. Secondary transactions in the district have fallen into a standoff, and weekend viewing appointment volumes have also declined slightly compared to the previous week.
As for the New Territories, 21 benchmark estates recorded 585 groups of clients with viewing appointments this weekend, down 0.8% week-on-week.
Ricacorp Properties' branch manager for Tin Shui Wai - Kingswood Villas, Xiao Qinuo, stated that the market is concerned about the increased probability of a US rate hike next month, with buyers believing that prices need room for correction. However, most owners are unwilling to significantly reduce prices, leaving both sides deadlocked and causing transactions at Kingswood Villas to slow this month.
Currently, buyers are mainly adopting a wait-and-see attitude, and weekend viewing appointment volumes at the estate are also under pressure. A more significant recovery in transactions is expected only after interest rate trends become clearer or more owners are willing to expand their price reduction margins.
Comments