Melin: Hong Kong stock market volatility dragging down property market sentiment with weak trading of second-hand properties in the first half of June in Hong Kong's "Top Ten New Communities"

According to data from various branches of the United States in June, the second-hand transaction volume of the "Top Ten New Communities" in Hong Kong recorded 125 transactions in the first half of the month, a decrease of about 37.2% compared to 199 transactions in the same period in May. Apart from being affected by stock market fluctuations, the weakening of second-hand trading is also attributed to the continuous rise in property prices, which has slowed down the pace of some buyers entering the market. However, with several new developments in progress, it is expected to boost the property market sentiment, and purchasing power is expected to be released again after a brief adjustment. Entering June, the Hang Seng Index has fluctuated repeatedly, and the market sentiment has become more cautious, resulting in a softening of second-hand property transactions. Analyst Chen Songqian from United Property pointed out that the United Property Research Center has identified more than 70 new housing estates as "Top Ten New Communities", divided by region, including Wong Chuk Hang, Ho Man Tin, Tseung Kwan O South, Kai Tak, Nam Cheong, Pak Shek Kok, Yuen Long South, Yuen Long Station, Tsuen Wan West, and Tai Wai. Chen Songqian continued to say that in the first half of June, 7 out of the "Top Ten New Communities" saw a decline in second-hand transactions, with Tsuen Wan West experiencing the most significant drop, recording only 5 transactions, a sharp decline of about 83.9% from the previous month. Meanwhile, Wong Chuk Hang only recorded 1 transaction, also a sharp drop of about 80%, believed to be related to the purchase power being taken up by new developments in the area. Tseung Kwan O South saw a decrease of about 56% in the number of second-hand transactions, Pak Shek Kok also decreased by about 48%, Nam Cheong and Ho Man Tin respectively dropped by about 38.5% and about 33.3%, Tai Wai also decreased by about 25%. Among the remaining 3 districts, Yuen Long South maintained the same number of second-hand transactions at 14, Yuen Long Station slightly increased by 1, and Kai Tak performed the best, recording 19 transactions in the first half of the month, an increase of 5 from the previous month. Despite the overall decrease in transaction volume, the property prices have remained relatively strong. Among the "Top Ten New Communities", 7 districts saw an average price per square foot increase in the first half of June. Nam Cheong had the highest increase of about 5.1% compared to the previous month, while Tsuen Wan West, which saw the largest decrease in transaction volume, recorded an increase of about 5% in price per square foot. Kai Tak increased by about 4.8%, Tai Wai and Yuen Long Station both rose by about 3.5%, Pak Shek Kok and Wong Chuk Hang increased by about 2.4% and about 2.2% respectively. As for the 3 districts with a decrease in price per square foot, Ho Man Tin and Tseung Kwan O South decreased by about 1.3% and about 2.1% respectively, while Yuen Long South experienced a decrease of about 6.9% compared to the previous month.