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Pricing of New Project Is 20% Lower Than Second Hand Property Price; Sq Ft Price Is Around Ten Thousands.

Image Caption
The first batch of the Paragon in Tai Po are 324 units, with the lowest price in HKD 4.388 million.

Hong Kong Wen Wei Po (By Liang Yueqin)

At the beginning of the new year, the property market continued to speed up the adjustment. There was developer took advantage of hot sale in the end of last year to launch in low price. The Paragon in Shantang Street of Tai Po developed by China Overseas (COHL) and CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (CSCEC), including 1,620 units, announced the first price list of 324 units yesterday with the lowest discounted sq ft price in HKD 10,688 and the discounted average sq ft price in about HKD 12,800, which was about 20% lower than the second hand sq ft price in the same district, further more, one room unit in 379 sq ft was HKD 4.388 million after discounts.

There hasn't been large new project including more than one thousand units being put on sale in Tai Po for many years, and the pricing is attractive which is lower than second hand property price according to the latest market situation and the quality of the Paragon, the Managing Director of COHL, You Weiguang expressed. Applications for this project are collected since today and the sales will start next week at the soonest.

Applications for this project are collected since today and the sales will start next week at the soonest.

It takes only 9 minutes to walk to Tai Po Market Station from the Paragon and there is club surrounding with garden in total area of 240,000 sq ft, You Weiguang pointed. He also emphasized they always had a good relationship with local real estate agents and will announce the commission rate as soon as possible.

According to the price list, there are 324 units including 16 one-bedroom units, 174 two-bedrooms units, 82 three-bedrooms units and 52 three-bedrooms units with working room, which are in average sq ft price of HKD 15,705 and discounted average sq ft price of about HKD 12,800 base on discount of 18.5% at the highest for immediately mortgage payment within 120 days. Among them, the lowest price of one room unit in 379 sq ft is HKD 4.388 million, two rooms unit in 457 sq ft is HKD 5.388 million , and three rooms unit in 579 sq ft is HKD 6.888 million.

The developer provides secondary mortgage in 20% to 25% of the property price, while the total mortgage amount of the first and the secondary mortgages should not exceed 85% of the property price, and the maximum period is 20 years, with mortgage rate of the first two years in P-2% (P is 5.125% when secondary mortgage is in 20%) or P-1% (when secondary mortgage is in 25%).

Developer provides secondary mortgage in 25%.

The Paragon located in Litchi Hill of Tai Po consists of 17 residential towers supplying 1,620 units in usable areas from 334 sq ft to 1,388 sq ft and layouts from one room to four rooms, and there are also parking spaces for 358 cars and 17 electric bicycles.

At present, there are not many residential projects in Shantang Street in the Mid-Levels of Tai Po. Among them, the transaction volume of Cheung Kong’s Yingfeng Tsui Estate is rare. The latest transaction sq ft price was about HKD 12,900 while in nearby project Dragon Castle it was HKD 13,763. The sq ft price of the latest transaction of the second-hand housing estates near Tai Po market railway station such as Uptown Plaza was about HKD 16,000. In other words, the discounted sq ft price of the Paragon is about 20% lower than that of the second-hand property in the same district.
The price of the Paragon is shocking, which is about 20% lower than second hand private property price over twenty years along the railway in the same district,

possibly because developer hoped it will be in good sales referring to the hot new project in Kwun Tong in early, the Asia Pacific Vice chairman and President of Residential Department, Chen Yongjie,expressed. At present, the market condition has slightly warmed up. It is believed there will not be problem to sell more than one thousand units before the Lunar New Year if the developer maintains the mark up within 3% to 5% in additional launching.

The second hand property sq ft price in nearby project is between HKD 1.4 million to HKD 1.7 million.

Since the demand from users continues high, and the low level prices of the Paragon are only about HKD 4 million to HKD 6 million, further more, a three rooms unit is just about 500 sq ft, which is rare in the same district, plus there hasn't been large private project being put on sale in Tai Po for many years, so it is believed young first housing customers, people who want to change house, investor and even potential customers from Urban Renewal Authority (URA)’s Hong Kong first housing project in To Kwa Wan that will be launched in same period will be attracted, and the application is estimated to be ideal, he pointed.

The price of the Paragon is 20% lower to the second-hand property price in the same area which is about HKD 14,000 to 17,000, and it is believed the project rent may reach HKD 35 in a rent return of about 3.5% after occupation, which attracts investors, the Chief Executive Officer Of the Residential Department of Midland, Bu Shaoming expressed.
Translated by 28Hse.com . All right reserved.