HK Property Weekly : Weekend sales declined after minor adjustment on DSD

Sales volume in primary market remained low despite DSD adjustmentsThe primary market saw 21 units being sold in the past weekend, a drop of27% WoW, and represented the lowest number of transactions in the last threemonths. The transactions included Eivissa Crest in Sai Ying Pun (5 units), ParkSignature in Yuen Long (3 units), Harmony Place in Shau Kei Wan (2 units), TheReach in Yuen Long (2 units), The Rise in Tsuen Wan (1 unit) and MOUNTPARKER (1 unit).

    Transactions declined in the secondary marketAccording to media reports, 18 units of transactions were recorded in the topten popular estates during the weekend. Most of the major housing estatessuch as Tai Koo Shing, Kornhill Garden, Heng Fa Chuen, Whampoa Garden,Laguna Verde, Mei Foo Sun Chuen, Laguna City, Ocean Shores recordedweek-on-week declines in transaction volumes. According to Centaline, sellershave firmed up their asking prices after the announced minor adjustments inDSD which resulted in declined sales volume in the market.

    CCL increased slightly last weekCenta-City Leading Index rose 0.63% WoW: According to Centaline, the Centa-City Leading Index (CCL) rose 0.63% WoW to 118.86. The index tracking massestates (CCL Mass) was recorded at 117.90, up 0.58% WoW. Centaline saidthe slight increase reflected the impact of the US Federal Reserve hints tocontinue with low interest rates.

    Government confirms no possibility of relaxing the tightening measuresFinancial Secretary, Mr. John Tsang, stressed in his latest blog that the DSDadjustment was not a relaxation of property curbs. He states that risks in theproperty market are still high, and currently there is no potential for thegovernment to relax the property market tightening measures. Besides, hereminded homeowners of the risk of selling late, cautioning that marketconditions would be very different if there is a long time lag between propertybought and property sold. In the current market environment where secondaryvolume is sluggish, timing to sell old units is uncertain and given the extra 30-45 days under the new proposal, we believe this is highly unlikely to make abig difference. This has been highlighted by the continued sluggish salesperformance in the primary and second markets after the announcement of theDSD adjustment.

    Key new launches in May 2014City Point by Cheung Kong, Nan Fung and MTR in Tsuen Wan with 1,717 unitsMacPherson Residence by Kowloon Development in Mongkok with 293 unitsHarbour Pinnacle by Henderson in Tsim Sha Tsui with 262 units.

    Eivissa Crest by Far East Consortium in Sai Ying Pun with 106 units