High prices strangling second-hand market: Realtor

2013-4-22

From：Macau Business

The second-hand real estate market is being negatively impacted by a mismatch between the prices asked by sellers and bank valuations, Centaline (Macau) Property Agency Ltd writes in its latest market review.

The realtor’s March review says bank valuations of second-hand homes are far from the prices asked by sellers, adding to the buyers’ down payment costs, our sister publication Business Daily reports.

“The mortgage threshold for second-hand homes is high, as the banks’ valuation is usually 5 to 15 percent lower than the property price,” Centaline’s sales director, Noelle Cheung, says in the review.

“As the purchasing cost for second-hand homes is high, buyers would rather opt for newly built flats,” she wrote.

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