HONG KONG – Hong Kong’s resale home market is cooling down after a brief rebound following the city’s removal of property curbs, underscoring the sector’s challenges.

The 10 biggest residential estates posted 19 transactions at the weekend, a 32 per cent slump from a week ago, according to a Centaline Property Agency report.

It is the second drop in a row, despite a short spike after the government scrapped property taxes in February to boost sales.

Existing home transactions are coming under pressure as they compete with new offers, and buyers remain deterred by high interest rates.

Hong Kong developers have been selling new homes at low prices to clear an abundant supply.

Wheelock Properties unloaded 368 apartments in its Seasons Place project, the company said on March 23.

The initial price of HK$14,188 (S$2,440) per square foot for the first batch of 130 units was the cheapest for sales of the same type in the area since mid-2019, and 8 per cent lower than secondary units in the neighbourhood.

The property industry will remain under pressure, especially as prices continue to drop despite the curb lifts.

Colliers International Group expects the situation to improve in the fourth quarter when some of the inventory is absorbed. BLOOMBERG