Secondary home sales up 21% to 1,725 in first half of February

This is partly due to stamp duty amendments encouraging home upgrades.

Secondary home transactions overtook primary sales as the former rose 21% MoM to 1,725 transactions in the month through February 18 thanks to a recent stamp duty amendment encouraging  more home upgrades, according to Bank of America Merill Lynch’s property market monitor.

“Banks turned more aggressive in property valuations (up 8% MoM for some standard two-bedroom units at Taikoo Shing) for mortgage applicants, which should also facilitate secondary market transactions,” said BofAML analyst Karl Choi. 

Primary transactions, on the other hand, dipped from 828 in January to 747 in the month through February 20 with unit sales from Grand Oasis Kai Tak, City Hub and The Parkville projects buoying February’s dismal figures. 

However, the sales in the primary home market is expected to pick up by March following Finance Secretary Paul Chan’s hotly awaited budget speech which is hoped to provide clarity on certain housing policies. 

Major projects scheduled for launch include 1,600 units for Wheelock’s LOHAS Park Package 5A “MALIBU” and 1,122 units for K. Wah’s Pak Shek Kok project.