Property buyers were spooked during the Hungry Ghost Festival this year, with only three properties amounting to $5.23 million sold at auction, and none of them were residential properties, according to data released by Colliers International.
In contrast, a total of 14 transactions amounting to $25.92 million were closed during the Hungry Ghost festival last year, and most of them were residential, which accounted for $18.98 million.
Around 44 residential properties were launched for sale during this year’s Ghost Month.
Grace Ng, deputy managing director for Agency and Business Services at Colliers International, said that the company’s failure to sell has more to do with savvy buyers rather than cultural taboos.
“It could be attributed to sellers’ increased expectations and higher asking prices, leading to a longer period of marketing and negotiations as buyer resistance set in over time.”
About 51 properties were put up for auction during this year’s Ghost Month, and only 7 of them were mortgagee sales. It was the lowest monthly tally in 2010 and the lowest number in 13 years, which Colliers said reflects a robust property market, buoyant economy, low interest rates and high employment.
This year’s auction sales reached a total of $114.65 million. Colliers believes that despite the government’s recent announcement of anti-speculative measures that will have “an impact on the property auction market in the short term”, this year’s full-year figure is expected to be close to the figures seen last year, at around $168.4 million.
“Buyers will now be more careful when doing their sums based on the reduced 70 percent loan to valuation in financing, while sellers will be more realistic when setting their asking price,” said Ms. Ng.