Ligao Pavilion: The average profit margin of private residential properties flipping in August continued to increase for two consecutive months, reaching 26.4%.

Ricacorp Properties' Director of Property Research, Chen Haichao, stated that in August 2024, out of 1,465 known transfer cases of second-hand private residential properties in Hong Kong, a total of 970 cases made a profit, accounting for 66.2%, marking a consecutive decline for two months and a further decrease of 0.3 percentage points compared to the previous month, reaching a near 3-month low. The property market has remained under pressure since the third quarter, and the rate of profit from flipping second-hand private properties has been declining. However, with the beginning of the interest rate reduction cycle, it is expected that the trend will start to reverse as early as October. He mentioned that the continuous promotion of new properties at low prices continues to put pressure on the profit margins for second-hand property owners, and it is predicted that the profit rate for flipping second-hand private properties in September will further decrease to around 65%; the average profit margin per property is expected to remain at the narrow range of 25% to 26%. Data shows that in August of this year, the average profit margin per property in flipping private residential properties was 26.4%, marking an increase for the second consecutive month with a further increase of 2.9 percentage points, reaching a new high in nearly 4 months. Cases where profits were double or more made up 29.4% of the total volume of second-hand private residential transactions, with no change compared to the previous month, totaling 431 cases. On the other hand, there were 481 cases recording losses, accounting for 32.8%, a slight decrease of 0.1 percentage points compared to the previous month, which is at a high level fluctuating throughout the year. In terms of numbers, there were 102 fewer cases compared to the previous month, the lowest in nearly 6 months. There were 14 cases of transactions with no profit or loss, accounting for 1.0%, a slight increase of 0.4 percentage points compared to the previous month. In terms of property region, the performance of Hong Kong Island continued to outperform the overall market in August, with a success rate of 72.0%, an increase of 4.4 percentage points compared to the previous month. The New Territories followed with 66.7%, a slight increase of 0.7 percentage points, while Kowloon lagged behind with 62.4%, a decrease of 4.1 percentage points compared to the previous month. In terms of resale property prices, the group with prices above 12 million HKD had the highest profit rate of 70.4%, an increase of 3.1 percentage points compared to the previous month, involving 112 cases. Additionally, the group with prices between 4.01 million and 6 million HKD also had a profit rate of 69.2%, an increase of 1.3 percentage points compared to the previous month, outperforming the overall market. Moreover, among the top 10 properties with the most profit registrations last month, there were 2 properties, including Jockey Club and New Town Plaza, who recorded a 100% profit rate. Other properties with relatively high success rates include Amoy Gardens (88%) and City One Shatin (84%). However, Tycoon Place recorded an average loss of 5.6%, indicating a weaker performance. Furthermore, New Town Plaza became the property with the highest average profit per transaction, reaching 95.8%. Excluding Tycoon Place, the property with the lowest profit margin last month was Whampoa Garden, with an average profit of only 22.3%, followed by named city with 22.8%.