The crowded Hong Kong home flats are far beyond affordable.

The crowded Hong Kong home flats are far beyond affordable.

Distorted demand and supply.

Small home flats, those measuring less than 430 square feet, continued to lead gains last week. The discussion of relaxing stamp duties slapped on larger flats as a measure to free up supply of smaller apartments in the secondary market is on the table.

While mini units continued to see overwhelming response despite price hikes, premium properties were given the cold shoulder and had to be sold at deep discounts a reflection of a distorted housing market.

Cheung Kong Holdings (0001.HK) put 25 remaining studio flats up for sale at Mont Vert in Tai Po yesterday, with prices rising by up to 30 percent. Nearly 30 prospective buyers will have to vie for one apartment.

Measuring from 165 to 196 sellable square feet, the units are now selling for between HK$10,929 and HK$13,204 pssf, or HK$1.69 million and HK$2.23 million, even after all the sweeteners.

But larger flats are facing a bleaker scenario, as Cheuk Nang (Holdings) (0131.HK) slashed prices of the first 30 units at One Kowloon Peak in Tsuen Wan by up to 32 percent, charging a minimum of HK$10.54 million.

It came just two days after the developer said it had no plans to sell the luxury flats any cheaper, and that future sales would come at higher prices.

The secondary market also quietened down. Deals tracked by Midland Realty sank 38 percent to a four-week low of 13 over the weekend.

Vendors are less keen to sell on the eve of the Lunar New Year and buyers have been put off by high prices, residential chief Sammy Po Siu- ming said.

Centaline Property also logged 13 transactions, down 35 percent.

Source: The Standard Finance

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