property
Tsim Sha Tsui Auction Clearance Rates Signal Shifting Buyer Sentiment
A 38 percent clearance rate at the latest round of sales shows buyers holding back on bids for waterfront and street-level lots.
How we reported this
Clearance rates at Tsim Sha Tsui auctions fell to 38 percent in the June round, with only eight of 21 lots finding buyers.
The drop comes after two straight quarters of flat transaction volumes across the district, where owners had listed more units than in the same period last year. Auction houses scheduled the sales to test price levels before the summer slowdown, and the results show bidders refusing to meet reserve prices on most residential and retail parcels.
Results from the latest sales
Four lots along Salisbury Road near the Hong Kong Cultural Centre attracted no bids above the HK$18 million reserve. Two retail units on Peking Road close to Harbour City sold after last-minute cuts of 12 percent from their guides. The remaining successful sales included small offices above Ashley Road that went for between HK$9.2 million and HK$11.5 million.
Local agents at the Midday Auction Group, which handled the June event, recorded average achieved prices of HK$24,800 per square foot for the sold residential lots. That figure sits 6 percent below the March average for comparable space in the same streets.
Signals for the months ahead
Buyers who missed out on the June lots are now watching listings set for August at the same venue. Those considering bids should review recent comparable sales on the Land Registry site before setting limits, and factor in the extra stamp duty that applies to properties bought through auction. Sellers with units on the Tsim Sha Tsui East promenade may need to adjust expectations downward if they want a result before the end of the third quarter.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.