More Hong Kong homes sell at a loss despite signs prices have bottomed: agents

Despite signs that Hong Kong property prices could have bottomed out and begun rebounding in August, market sources said at least 100 secondary residential homes were sold at a loss in September, up from at least 81 the previous month.

Hong Kong’s property market dodged an immediate setback from the US Federal Reserve’s rate increase in September, and agents estimated that home prices could end the year 15 per cent higher than a year earlier. The positive trend, however, did not generally apply to the secondary home market, agents added.

Loss-making secondary-home transactions last month were recorded across Hong Kong Island, Kowloon and the New Territories, spanning both the luxury and mass-market segments. The losses ranged from more than 10 per cent to as much as 30 per cent, according to sources.

Sai Kung, long regarded as Hong Kong’s traditional enclave for luxury homes, continued a years-long trend of secondary-home transactions completed at a loss, sources said, adding it had extended to high-value, low-density developments including Mount Pavilia, The Mediterranean, Hebe Villa and Casa Bella.