Since the removal of the cooling measures last month, the first-hand properties transactions have rebounded significantly. In March, the property transaction volume has risen to about 3,900 cases, setting a record for first-hand properties transactions within a single month in recent years. Although the market sentiment improved, the sales of 282 units in the second round of Seasons Place were not completely sold out. This result indicated that the absorption rate of the new flats has been fading away.
The market must be aware of the sales of Blue Coast, which will be launched by Cheung Kong at a price of HK$21,968 per square 
foot. This is a high-quality project in the southern region of Hong Kong Island. Cheung Kong is adept at managing the new projects' sales and its pricing strategy will ensure a successful sales record in this project.
Last year, Cheung Kong launched the new flat “The Coastline” in Yau Tong at a low price, and its sales record was satisfactory. At that time, many experts believed the successful sales record of the "The Coastline" would have a positive impact on the property market. Unfortunately, the property market was weakened after the completion of this project's sale. This outcome is not expected of most of the property experts.
When The Coastline was sold out in September last year, the purchasing power was completely sucked out. As a result, the property price plummeted from last September to the end of February this year, which lasted for half a year, causing property prices to fall by 10 to 15%.
At this moment, Cheung Kong is determined to push sales “Blue Coast,” so there is no doubt that it can successfully clear all these stocks in near future. The question is whether the market still has enough purchasing power to push it on the road to recovery after the sales of “Blue Coast”.
The sales of first-hand properties will be fully assessed in a month after the “Blue Coast” has been sold out. If the sales activities are deteriorating, it may indicate that a new round of decline has begun again. Therefore, it is unreliable to predict that the property market has embarked on the road to recovery based on the first-hand properties sales in the first month of the removal the cooling measures. This predication may just be a good intention without thoughtful consideration.
If Cheung Kong is a property market harvester, it is compatible with its previous sales record. Six years ago, Cheung Kong sold out most of the floors in Central Center for forty billion dollars. Until now, its sales price has been dropping by 40% per square foot. The Coastline, which created a sales miracle last year, was another example. Nowadays, “Blue Coast” is prepared to enter the market in full speed. Whether history will repeat again, everyone should take a breath to wait and see.
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