Bullish Market Causes Prices to rise

Posted on 01 July, 2021 | By Property852

With local pandemic improvement, pent-up purchasing power is being released, pushing up home prices. Rating and Valuation Department data indicates property prices from January through April rose 2.87%. The cumulative rise was just 1.57% beneath the May 2019 peak. Outperforming the market were many large housing estates. The twenty index housing estates showed average increases of 0.6 to 7.1 percent per square foot above January. The rise shows the bullish market spurring more aggressive buyer activity. Tung Chung’s Caribbean Coast showed the most significant price increase of these estates. Last month, its average price was HK$12,312 per square foot, an increase of 3.4% since April’s HK$11,910, and a 7.1% rise from January’s HK$11,493.

The estate has maintained a strong pace of over 30 deals a month. Last month, up to 37 deals were recorded, the second highest of 2021 after January which topped 45 deals. Caribbean Coast’s strong performance was followed closely by Yoho Town in Yeung Long, with an average price of HK$16,487 per square foot last month, increasing 1.9% from March, and 5.6% above January’s HK$15,610 per square foot. Thirty-one deals were recorded by the estate last month, a 10.7% increase over the twenty-eight deals in January.

In Quarry Bay, Taikoo Shing saw an average price of HK$20,010 per square foot, up 1..7% over March, and 4.2% over the HK$19,195 per square foot recorded for January.

Fifty-one deals were made at Taikoo Shing last month, one percent over the 48 sales of January. Vincent Cheung Kiu-cho, Managing Director of Vincorn Consulting and Appraisal, remarked that there aren’t many estates close to MTR stations costing less than HK$13,000 per square foot. Kingswood Villas and Caribbean Coast in Tin Shui Wai are examples.

Cheung opines that Caribbean Coast’s recent price increase reflects catching up with the levels of other estates neighboring MTR stations.

Cheung also remarked that recent increases in east Kowloon’s supply of small and medium-sized units has caused price growth slowdown at Kowloon Bay’s Telford Gardens, and other similar-aged housing estates with smaller-sized units. Willy Liu Wai-keung, Ricacorp’s Chief Executive, noted that Telford Gardens’ stagnation was also due to its accumulating a certain amount of growth from the influence of new Kai Tak projects, combined with the estate’s smaller bargaining leverage due to age.

As for Caribbean Coast’s boom, he commented that the estate had been affected previously by negative factors like aviation workers surrendering tenancies or listing properties for sale, decreasing prices. However, with the prospect of air travel recovery, Tung Chung estate’s prices have begun picking up again, Liu added.

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