Hong Kong's weekend secondary transactions rebounded to 26

Check out the winning developers.

According to Maybank KimEng, only 2 primary residential property units were being transacted over the weekend, a further drop from 5 over the previous week as only two smallmedium-scale projects, Dunbar Place (Swire Properties (1972) in Homantin) and Green Code (HK Ferry (50)’s 728-unit project in Fanling) were available for sale 2 weeks after the new First-Hand Sales Ordinance has become effective.

Maybank also noted that secondary transactions from top 10 residential estates rebounded 2.3x from a low base of 8 transactions to 26 last weekend, supported from smaller-value units mainly in New Territories. Notable secondary transactions were recorded in Kingswood Villas (10 units) and City One Shatin (9 units).

Here's more:

The unit transaction also set a new record since end-January, when the figures were hovering between 1 and 20. On primary property launches, The Avery (Kowloon City, by Sino Land (83)) with 21 remaining units for sale out of the total 78 will become the next available-for-sale project which could be marketed on Wednesday at the soonest, according to Ming Pao.

Implication: The mixed performance from primary and secondary market is inline with market’s expectations. The low base effect and cumulative 4.2% drop (to 118.51 in previous week) in Centaline Centa City Leading Index since midMarch contributed to the rebound in secondary sales. We expect that more primary projects will be available for sale towards the end of this quarter with developers’ compliant to the new Ordinance.

Action: Only accumulate quality developers upon share price weakness. We like Henderson Land (12) on its small-unit and commercial property pipeline, farmland conversion and donation in progress, and Chairman Lee’s stake hike. The counter is trading at 34% discount to our RNAV of HKD86.73 per share.