Sellers of public housing asking 'jackpot' prices and driving off buyers

Sellers of public housing flats are trying their luck with "jackpot" prices and turning buyers away from the market, agents say.

"Asking prices of public housing flats have surged by 30 to 50 per cent in the last two months," Fullmark Property Agency sales manager Kim Chan Shek-kam said. "Sellers are setting prices as if they want to try their luck by winning the Mark Six jackpot, despite the fact they can hardly find any buyers at those prices."

The surge in prices saw a public housing flat on the Heng On Estate in Ma On Shan, New Territories, sell for a record-breaking price of nearly HK$3.29 million last month. Chan said flat owners at the Fung Tak public housing estate in Diamond Hill had been asking for between HK$1.2 million and HK$1.3 million for their 500 square foot flats about a month ago, but were now asking HK$1.8 million to HK$2 million. Prices for public housing flats at Lower Wong Tai Sin Estate had jumped from below HK$1.6 million two months ago to at least HK$2 million now.

Data from Centaline Property Agency shows 45 public housing flats were sold in the secondary market for a total of almost HK$77.6 million in May. The number of sales was up 44 per cent, and prices up 41 per cent, month on month.

Fourteen of the flats were sold for more than HK$2 million, including the one in Heng Fung House on the Heng On Estate.

Of the 10 highest prices ever paid for public housing flats, six were in the first five months of this year, Centaline data shows.