Transactions of low-priced apartments fell further on the secondary market in Hong Kong last month, a development that suggests that prices of the units have been jacked up, putting off potential buyers, Hong Kong Economic Journal reported Monday.
The city saw only 930 low-price flats, which are defined as costing HK$3 million (US$387,060) or less, being sold on the secondary market in August, marking a decline of 15.9 percent from July, Wong Leung-sing, senior associate director of research at Centaline Property Agency, was quoted as saying.
The number accounted for 22.2 percent of the city’s total real estate transactions last month, falling for the ninth month in a row and hitting fresh record low for six straight months.
Wong said the fall in the ratio came as speculative activity pushed up home prices in general. With people expecting prices to shoot up further, fewer low-price units could be put up for sale in the coming months.
He said the special stamp duty implemented by the government to deter speculative homebuyers was also one reason that restricted supply of low-priced homes.
Data showed that New Territories, where the low-priced flats are mainly located, accounted for 58.3 percent of such flats sold in August, followed by Kowloon at 31.5 percent and Hong Kong Island at 10.2 percent.
The trend suggests that if one is looking for low-priced offers, one should focus on northern part of the city, Centaline said.
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