Hong Kong property: new pricing weighs on home market as tariff war hurts demand
Both transaction volume and home prices in Hong Kong's secondary property market remain under pressure, as developers continue to launch new residential projects at low prices and homebuyers stay cautious amid uncertainties arising from US tariffs, market experts said.
'The cluster of secondary residential projects that are being affected by the low pricing of new projects are bigger due to convenience in transportation' said Norry Lee, senior director of projects strategy and consultancy in Hong Kong at real estate firm JLL.
Sun Hung Kai Properties' Sierra Sea – part of its 9,700-unit megaproject in Shap Sze Heung, located between Sai Kung and Ma On Shan – set its selling price last month at levels last seen in the area in 2013. The pricing was still about 20 per cent lower than second-hand properties in the district.
'The project did not just pressure home prices in the second-hand market in nearby districts, but in the whole New Territories East,' Lee said.
A 502 sq ft, two-bedroom unit at Solaria in Tai Po was recently sold at a 30 per cent loss, according to an agent. The flat changed hands for HK$6.23 million after the owner bought it for HK$8.8 million in 2018.
Potential buyers queue up to the property sale of Sun Hung Kai Properties' Sierra Sea at the International Commerce Centre on May 3. Photo: Elson Li
The Centa-City Leading (CCL) Index, a gauge of lived-in homes compiled by Centaline Property Agency, stood at 136.7 on Friday, a 0.3 per cent increase from the same period last month. The sub-index for Kowloon East dropped 1.7 per cent, while Kowloon West and Hong Kong Island saw slight increases.
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