The secondary housing market in Hong Kong has seen renewed gains, with 143 property sales out of 177 monitored across the city recording profits. This represents approximately 81% of the total transactions, with the average profitability ranging from HKD 200,000 to HKD 21.77 million, with the largest profit margin being 52 times. Notably, a unit in Jingli Garden in Mt Eastside soared 52 times, with the original owner making a profit of over HKD 15.6 million from an initial purchase price of just HKD 300,000 in 1973, after holding it for about 53 years. The average profitability margin decreased slightly compared to the previous month, affecting 51 properties that showed losses, but this was a drop from the previous month's 57 losses. One of the top profit-making units was in Kuanghu Jugi 2 in Tsuen Wan, where a unit sold for HKD 23.88 million in December 1988, making a profit of over HKD 21.77 million, representing a 10.3 times earnings multiple. With the secondary market seeing robust new property sales, which continues to soak up buyer interest, the secondary housing market looks set to maintain a stable trading volume at around 4,000 transactions. Analysts predict that if new property launches slow down next month, the secondary market could continue to hold at this level. However, due to the thriving new property market, secondary property owners have become more confident about the market outlook, which is narrowing the negotiation space and causing potential buyers to remain on the sidelines.
The figures for losses are down from 57 to 51 listed properties this month, with these sales covering 46 different estates, each recording a loss ranging from HKD 15,000 to HKD 12.24 million. Among the highest losses was a unit in Kau Lek 6 of West Cape, which sustained a loss of HKD 12.24 million after 7 years of holding the property, representing a 27% loss margin. The unit in Heimon's 9 in Kwun Tong lost the most, with an owner selling a unit for HKD 23.8 million, even though he had paid HKD 33.51 million for it in March 2019, incurring a HKD 9.71 million, or 28.98%, loss. Overall, the secondary market shows a mix of gains and losses, with market confidence driven by new properties offsetting the lingering effects of the secondary market adjustments.