Reduced activity in property transactions observed in significant residential developments following the introduction of new projects.
Midland Realty's report reveals a significant decrease in property transactions within ten major housing estates during the first half of May compared to the previous month. The decline in activity is attributed to the growing interest of buyers in newly launched projects.
According to data provided by Midland Realty, only 55 transactions took place in the ten prestigious housing estates during the first half of May, indicating a decline of approximately 36.8 percent compared to the 87 transactions recorded in April.
Sammy Po Siu-ming, the chief executive of Midland's residential division for Hong Kong and Macau, explained that the market's attention has shifted towards newly constructed properties. This shift is a result of developers expediting the launch of new projects and offering discounts to attract buyers, particularly after the removal of housing restrictions in late February. As a consequence, the demand for second-hand properties has waned.
Despite the decline in secondary market transactions, Po predicts an overall increase in residential transactions for the next quarter, both on a quarterly and yearly basis.
Analyzing the data by districts, notable decreases were observed in Taikoo Shing, Kornhill, and South Horizons on Hong Kong Island, with only 11 transactions, representing a month-on-month decline of 66.7 percent. In Kowloon, Laguna City, Whampoa Garden, Metro City, and Mei Foo Sun Chuen combined for 24 transactions, a decrease of 35.1 percent compared to the previous month. On the other hand, in the New Territories, Caribbean Coast, City One Shatin, and Kingswood Villas experienced an increase, posting a total of 20 transactions, reflecting a rise of 17.6 percent compared to the previous month.
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