Fresh protests hit Hong Kong property sales, but weekend total highest since January amid pent-up demand

By Eric Ng

/ SCMP |

May 26, 2020 11:22 AM SGT

Hong Kong homes sales took a hit on Sunday as buyers were deterred by protests sparked by Beijing's plan to impose a national security law on the city, although overall weekend sales reached a four-month high, according to agents.

Thousands took to the streets in the Causeway Bay shopping district to protest against the plan unveiled on Thursday to craft and pass a national security law for Hong Kong. Dozens were arrested by police who fired tear gas.

"Sunday's sales have been lower due to road blockages caused by the protesters," said Louis Chan Wing-kit, Asia-Pacific vice-chairman of the residential division at Centaline Property Agency. "But the combined sales of Saturday and Sunday is expected to be close to 300 units, a level not seen since January."

"The figures show that the political situation has not had a big impact on home purchases ... given negative interest rates after inflation, investors and users are still keen to buy as soon as the social distancing measures were relaxed a week ago."

Sales of Sun Hung Kai Properties' Wetland Seasons Park residential project went well on Saturday. Photo: May Tse

Henderson Land sold 40 of the first batch of 88 units, ranging from 197 sq ft to 257 sq ft, at its 488-unit Aquila Square Mile project in Mong Kok as of 6pm, agents said. The prices for the units range from HK$22,692 to HK$25,346 per sq ft after discounts of up to 7 per cent discount.

Wing Tai Properties sold 27 out of 108 units in the second batch at OMA by the Sea near the Gold Coast Yacht & Country Club in Tuen Mun, agents said. The flats range in size from 297 sq ft to 619 sq ft.

Since the developer launched sales last Sunday, Wing Tai has sold 217 units in the project, reaping HK$1.13 billion as of last Wednesday. Another 53 units are slated to be auctioned on Monday.

The twin-tower project has a total of 517 units, ranging from studio to four-bedroom flats, with many commanding sea views.

Meanwhile, Country Garden and Wang On Properties managed to sell only five out of 115 units at their joint 547-unit Altissimo development in Ma On Shan, according to agents.

Some 49 were offered at specified prices, while 66 will be auctioned from Sunday until August 19. Previously sold units fetched an average of HK$17,540 per sq ft. The developers are offering incentives, including loan interest discounts worth up to 15 per cent of the flat price and special discounts of as much as HK$168,000 to 20 buyers.

On Saturday, Sun Hung Kai Properties, the city's most valuable developer, sold 95 per cent of 200 units offered in the first batch of the second phase of its Wetland Seasons Park project in Tin Shui Wai after cutting prices by up to 18 per cent.

Easyknit International found buyers for eight of 26 units at The Ayton in Kowloon with discounts of as much as 8 per cent.

An aerial view of the OMA by the Sea under construction in Tuen Mun, as of May 13, 2020. Photo: May Tse

Beijing's new national security law for Hong Kong would bypass the city's legislature that was supposed to, but failed to, legislate the law due to domestic opposition. It would outlaw secessionist and subversive activities as well as foreign interference and terrorism in Hong Kong.

Hong Kong's stock market tumbled 5.6 per cent on Friday, the most in almost five years, with property developers among the worst hit.

Investors were fretting Beijing's move would result in a return of frequent street protests in Hong Kong that led to a retail slump and recession last year, worsened this year by the coronavirus pandemic.

They were also worried it could see the US sanction officials and entities enacting the security law and banks that do business with them, and end the city's preferential trading and investment privileges with US businesses.

Hong Kong's property developers recorded disappointing sales for the sixth time in nine weeks last weekend, amid a prolonged recession with gross domestic product shrinking 8.9 per cent in the year's first-quarter " the steepest since record began in 1974.

But overall home prices gained 0.9 per cent last week, ending a nine-week slump, Centaline Property Agency said last Friday.

Prices have retreated 6.8 per cent on average from a peak in June last year, according to the Centa-City Leading Index.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved.

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