Flat sales in Hong Kong remain slow, as potential buyers opt to rent while awaiting a new outlook in the wake of government attempts to curb the real estate market, according to a report by The Standard.
Midland Realty registered a total of 21 transactions, compared with 24 in the previous week.
In addition, no transactions were recorded at Whampoa Garden in Hung Hom or Kornhill in Tai Koo Shing for a second week running.
Transactions for projects in Tseung Kwan O slipped 20 percent to less than 10 deals.
Kelvin Fan, a Hong Kong property agent, said around one in five owners who have released flats for sale are now also listing them for rent.
He added that some sellers are willing to offer potential buyers a bargain, with three percent as the average reduction.
However, one property owner cut 10 percent off the price of a 716 sq ft flat at Manhattan Hill in Mei Foo and sold it for HK$6.1 million (HK$8,520 psf).
“The owner had priced it at HK$6.8 million. But after seeing a slowing in transactions the owner offered to cut as much as HK$700,000 off the price,” said Elvia Chan, a Centaline Property agent.
While home sales are moving slowly, rentals showed good results over the weekend.
Kornhill saw 16 rental transactions over the weekend, after registering just 22 in May.
“Many potential buyers have turned to the rental market,” said Gary Yeung Wing-kin, Sales Director of Midland Realty.
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