As the Lunar New Year approaches, the festive atmosphere is growing, and the just-past weekend saw approximately 287 transactions in the primary property market. This represents a 33.6% decline compared to last week’s 432 transactions. Despite the overall slowdown in sales volume, the new project Sierra Sea Phase 2B maintained steady demand, becoming the market’s focus. Additionally, leftover units from projects like The Headland Residences, The Pavilia Forest, KT Marina, and One Park Place also recorded transactions, sustaining market activity.
In contrast, the secondary market remained subdued. According to statistics from the four major property agencies, the number of transactions in the city’s top ten blue-chip housing estates dropped to single digits, with only 8 to 9 deals recorded, reflecting a week-on-week decline of 33% to nearly 60%. This indicates a stagnant secondary market.
In the primary market, Sierra Sea Phase 2B’s developer achieved success with a focus on stable pricing and promotional strategy, avoiding steep price cuts while matching market rates and maintaining a steady sales pace. This strategy attracted buyers even in a sluggish market.
As for the slowdown in secondary transactions, seasonal factors such as year-end preparations and Lunar New Year shopping contributed to the cooling activity. Additionally, a strong sense of market caution is evident, with both buyers and sellers awaiting the upcoming Budget Announcement later this month to see if the government will introduce property market stimulus measures. Before policy clarity, homeowners are reluctant to sell, and potential buyers are holding off, leading to a quieter secondary market ahead of the Lunar New Year holiday.
Sierra Sea Sells Out Phase 2B’s 224 Units Across 12 Sales Rounds
On Saturday (Jan 7), Sierra Sea Phase 2B launched its third sales round, and all 218 units available for public sale were snapped up on the same day. On Sunday (Jan 8), six additional special units were sold through tender, bringing the total to 224 units sold over the weekend, generating HK$1.455 billion in revenue.
The units ranged in usable size from 416 to 710 square feet, including 153 two-bedroom flats and 65 three-bedroom flats. Discounted prices ranged from HK$4.618 million to HK$10.165 million, with per-square-foot prices between HK$10,085 and HK$14,821.
According to Sun Hung Kai Properties, seven bulk buyers collectively purchased 28 units on Saturday, with one group spending over HK$32 million. Nine other buyers each purchased three units.
Including last year’s sales of Sierra Sea Phase 1A(2) and Phase 1B, the project has achieved 12 consecutive rounds of same-day sellouts. Together with Phase 2A, launched last month, over 1,460 units have been sold across the two phases, generating over HK$9 billion. In total, Sierra Sea has sold more than 3,000 units in approximately nine months, with revenue exceeding HK$17 billion. The developer is now preparing for Phase 2C, featuring around 500 units, which is expected to launch by the end of the year.
The Headland Residences Sells 9 Units in One Day, Generating HK$78 Million
The Headland Residences, a project in Chai Wan jointly developed by Swire Properties and China Motor Bus, sold nine two-bedroom units with open kitchens on Saturday (Jan 7), generating HK$78.79 million in revenue. The units, each with a usable area of 538 square feet, were sold at discounted prices ranging from HK$8.42 million to HK$8.941 million, with per-square-foot prices between HK$15,651 and HK$16,619.
One bulk buyer purchased two units. According to transaction records, all weekend sales took place in Tower 3. The most expensive unit was Flat D on the 23rd floor, sold for HK$8.941 million at HK$16,619 per square foot. A similar unit, Flat D on the 21st floor, sold for HK$8.87 million at HK$16,487 per square foot.
In total, The Headland Residences has recorded 121 transactions, with total sales exceeding HK$1 billion.
The Pavilia Forest Sells 7 Units Over Weekend, Generating HK$66 Million with Three-Bedroom Units Reaching HK$26,870 Per Square Foot
The Pavilia Forest series, a Kai Tak Runway project jointly developed by New World Development and Far East Consortium, sold seven units over the past weekend (Jan 7-8), generating a total revenue of HK$66.13 million.
The transactions included two-bedroom and three-bedroom units, with the highest-priced unit being Flat C on the 21st floor of Tower 1 at The Pavilia Forest III. This three-bedroom unit, with a usable area of 579 square feet, sold for HK$15.558 million, equating to approximately HK$26,870 per square foot.
Other notable transactions included Flat A on the 22nd floor of Tower 5 at The Pavilia Forest I, a 512-square-foot three-bedroom unit sold for HK$11.484 million (HK$22,430 per square foot), and Flat E on the 19th floor of Tower 2 at The Pavilia Forest II, a 383-square-foot two-bedroom unit sold for HK$8.767 million (HK$22,890 per square foot).
Since switching to selling completed units, the project has quickly sold 215 units, generating over HK$1.7 billion. To date, a total of 872 units have been sold, bringing in nearly HK$6.3 billion, with strong interest from both institutional investors and foreign buyers.
KT Marina Sees Strong Demand for Two-Bedroom Units, Selling One for Nearly HK$11.49 Million
KT Marina, a completed development in Kai Tak by K Wah, Wheelock Properties, and China Overseas, recorded seven transactions over the weekend, including two two-bedroom units and five one-bedroom units, collectively generating approximately HK$52.83 million.
The highest-priced transactions involved two-bedroom units. Flat C on the 5th floor of Tower 2C, with a usable area of 551 square feet, sold for HK$11.4856 million at an average price of HK$20,845 per square foot. Another two-bedroom unit, Flat A on the 9th floor of Tower 2C, with a usable area of 508 square feet, sold for HK$10.678 million (HK$21,020 per square foot).
Among the one-bedroom units, the highest-priced was Flat D on the 12th floor of Tower 2C, with a usable area of 307 square feet, which sold for HK$6.528 million (HK$21,264 per square foot).
Year-End Secondary Market Slows as Top 10 Blue-Chip Estates See Five-Week Low in Transactions
The latest data from Hong Kong’s four major property agencies indicates that secondary market activity significantly slowed over the weekend (Jan 7-8). Transactions across the ten benchmark housing estates fell to single digits, with Midland, Ricacorp, and Centaline recording nine, nine, and eight deals, respectively. This represents a week-on-week decline of 50% to 57%, marking a five-week low. Hong Kong Property also reported eight transactions, a 33% drop from the previous week.
According to Louis Chan, Residential Division CEO of Centaline, the slowdown is largely due to the Lunar New Year, as many residents are occupied with cleaning and holiday preparations, temporarily pausing buying and selling activities. That said, the overall market sentiment remains positive, with new launches, such as the third round of sales at Sai Sha Road, achieving same-day sellouts, signaling the emergence of a “mini-spring” in the market and suggesting that the current momentum may continue.
Ricacorp’s CEO, Willy Liu, noted that the festive atmosphere and anticipation of the upcoming Budget Announcement at the end of the month have further dampened secondary market activity. Many buyers and sellers are adopting a wait-and-see approach, further cooling transactions at the ten major estates.
Despite the overall slowdown in the secondary market, individual cases in blue-chip estates continue to show significant returns for long-term owners.
For example, a high-floor unit in Block A of Kornhill in Quarry Bay, with a usable area of 497 square feet and a two-bedroom layout, was sold for HK$6.338 million. The unit, sold with a tenancy agreement, achieved an average price of HK$12,753 per square foot.
The original owner purchased the unit in 2010 for HK$3.95 million and held the property for 16 years, netting a profit of HK$2.388 million, representing a 60% appreciation in value.
