Although speculation was rife about price dropping due to the government cooling measures, sales prices have not followed suit yet, says Letizia Casalino from Hong Kong Sotheby’s International Realty. This, of course, is much to the frustration of many first-time buyers hoping for a correction.
Vendors are sitting on the fence waiting for clearer indicators as to the direction of the market. With interest rates still relatively low, most landlords are sitting on reasonable equity and comfortably paying their mortgages, with rental yields still supportive to their ongoing investment.
Thus the market seems to have reached an impasse; the beginning of the summer saw very few if no transactions during some weekends, which, for Hong Kong, is as rare as a blue moon. This shows that investors are behaving cautiously, waiting for the next “event” to enable a more informed decision.
As for the leasing market, middle-low price ranges continue to see compression, demand is high and property agents continue to report stiff competition and have had to sharpen their elbows to negotiate on their clients’ behalf. However, at the higher end of the rental market, agents and landlords are finding more middle ground when it comes to negotiating. One thing is for sure, it’s still a very popular time of year to be making a move to a new home.