Just 77 per cent of flats at Tseung Kwan O’s Villa Garda phase two development sold amid slowdown in property market
- Just 129 out of 168 flats at Villa Garda’s phase two development were sold on Sunday as recent interest rate hikes and stock market volatility take a toll
- The Centa-City Leading Index fell by 0.05 per cent in the past 7 weeks to 181.05
Hong Kong’s housing market is under greater pressure as home sales slowed down in Hong Kong amid concerns of rising interest rates, softening home prices and greater supply in the pipeline.
Just 128 out of 168 flats, or 76.8 per cent, offered at Villa Garda’s phase two development – developed by Sino Land, K Wah International and China Merchants Land – at Lohas Park in Tseung Kwan O were sold on Sunday, according to agents.
“After all, this is the third round of sales. The interest rate rise has some impact,” said Sammy Po, CEO of Midland Realty’s residential division for Hong Kong and Macau. “As [the impact] has spread to the first-hand [market], some buyers wait and see amid interest hikes.”
Villa Garda has sold 592 flats since the first sale on June 30, or 92 per cent of the total offering, for a total sales haul of more than HK$5.1 billion (HK$650 million), a Sino spokeswoman said.
The sale came after Centa-City Leading Index (CCL), the gauge of lived-in homes compiled by Centaline Property Agency, fell by 0.05 per cent in the past 7 weeks to 181.05, according to data released on Friday.
“The United States widened its rate hike, and local property prices softened. CCL is expected to soon fall below 180 points,” said Wong Leung-sing, senior associate director of research at Centaline Property Agency.
The volatility in stock market also made buyers hesitant, Po said, adding he was optimistic that upcoming new developments could reignite market sentiment with reasonable pricing.
