Photo Courtesy: http://urbangiraffe.com | Lego blocks alike hosing estates, a common symbol of highly concentrated living environment in Hong Kong.

Photo Courtesy: http://urbangiraffe.com | Lego blocks alike hosing estates, a common symbol of highly concentrated living environment in Hong Kong.

A shift in buying power to the primary flat market was recorded

The Land Registry recorded 62,212 deals up to 9th Dec 2014, rebounding 20 percent from the 2013 trough at 51,770. But it was still far from the peak of 166,982 transactions inked in 1997, 2014 is likely reach the second-lowest level since 1996.

Red-hot demand for homes last year lifted prices in the primary and secondary markets.

Of all secondary market sales registered, the share of units priced between HK$3 million and HK$5 million rose to a record 42.4%, figures from the Land Registry show. It was the first time their slice of secondary market sales rose beyond 40% since records began in 1996.

“Vendors were aggressive in their asking prices, with home prices continuing to rise as interest rates remained low throughout last year,” said Midland Realty’s chief analyst Buggle Lau Ka-fai. “Many prospective buyers had to put up with higher prices.”

About 21,010 transactions in the “HK$3 million to HK$5 million” range were logged, up 36.8% from 2013 in an eighth consecutive year of rises.

Kingswood Villas in Tin Shui Wai contributed most of these deals with 554 registrations. It was followed by City One in Sha Tin (466) and Amoy Gardens in Kowloon Bay (238). And 94% of sales at Greenfield Garden in Tsing Yi were recorded in that price range the highest concentration.

In the primary market, China Overseas Land (0688.HK) has priced the first 60 units at The Nova in Sai Ying Pun at a minimum of HK$8.53 million.

That comes nearly two weeks after the MTR’s nearby West Island Line went into service.

The pricing makes the cheapest home HK$7.5 million if a maximum discount of 12% applies.

The joint project with the Urban Renewal Authority will provide one to three-bedroom homes in the first batch, costing from HK$8.53 million to HK$19.48 million, or HK$20,599-HK$25,556 per sellable square foot.

No one can buy more than two flats in a development of 255 units, ranging from 365 to 855 square feet. A showroom in Wan Chai opened yesterday.

Source: The Standard Finance

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