2025-02-21 28Hse Editor
Hong Kong's real estate landscape has dramatically shifted since the peak of 2021. According to Centaline Property Agency, only Taikoo Shing in Quarry Bay remains valued over HK$100 billion, a stark contrast to the six estates previously at this valuation during the market's peak in August 2021.
The downturn has affected five major housing estates, which have seen their market values drop below the HK$100 billion mark. These include Mei Foo Sun Chuen in Lai Chi Kok, South Horizons in Ap Lei Chau, Whampoa Garden in Hung Hom, Residence Bel-Air on the southern district of Hong Kong Island, and Kingswood Villas in Tin Shui Wai.
Mei Foo Sun Chuen experienced a significant 34 percent decrease in total market value, now estimated at around HK$89.89 billion. This decline amounts to an average loss of about HK$3.56 million for each property owner within the estate.
Residence Bel-Air homeowners have faced the most substantial financial impact, with an average individual loss of HK$11.47 million and the estate's total value dropping by 27.8 percent to HK$82.13 billion.
The lull in the property market was evident over the past weekend, with transaction numbers at the 10 major estates remaining low as buyers anticipate the government's upcoming budget announcement. Both Centaline Property Agency and Midland Realty reported only six transactions within these high-profile estates, a slight decrease from the previous week and continuing a six-week trend of single-digit sales figures.
Sammy Po Siu-ming, the chief executive of Midland's residential division for Hong Kong and Macau, noted that potential buyers are adopting a cautious stance leading up to Financial Secretary Paul Chan Mo-po's budget speech this Wednesday.
Despite the current market conditions, Po highlighted recent positive developments for the local economy, such as the Chinese government's supportive measures for the real estate and financial sectors and the expansion of the individual visit scheme in Hong Kong. With major developers gearing up to launch new properties, there is a sense of optimism that the primary market will soon pick up momentum.
In a related update, Henderson Land Development's (0012) new project, Belgravia Place on Berwick Street in Shek Kip Mei, drew considerable interest with 180 checks received on Saturday following the release of 148 flats.
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