Hong Kong Wen Wei Po News (By Yan Lunle)
The super-luxury mansion on The Peak has always belonged to the wealthy people in the city since the sq ft price is up to HKD 80 or 100 thousand, but forfeiture of initial deposit is rare because most of the potential buyers are powerful. However, it was very rare that one case of forfeiture of initial deposit on super luxury house was recorded in the market. The property is the No. 16 bungalow of Mount Nicholson phase 1, which is known as the "Asian Property King". The transaction price was close to HKD 720 million. The buyer broke the contract only 10 days after signing the temporary sale and purchase contract at the end of last month, who has been confiscated by the developer for a 5% deposit of about HKD 36.09 million, becoming the second highest since the implementation of the First Hand Residential Property Sales Ordinance in 2013.
Mount Nicholson phase 1 on the Peak offers 17 super-luxury homes, and Wheelock Properties is responsible for its sales. This project sold No.16 house on 31st last month in transaction price up to HKD 721.882 million with usable area sq ft price in HKD 90,484, which is in usable area of 7,978 sq ft joining with terrace in 184 sq ft, garden in 5,163 sq ft, courtyard in 1,281 sq ft and rooftop in 982 sq ft, according to data from the first hand property sales information network. However, there has been no progress in the transaction after the signing of the provisional sale and purchase agreement, which means it becomes a case also the first case of forfeiture of initial deposit of this project.
It is expected due to the capital turnover problem not the pessimism on future market.
The buyer needed to pay 5% of the property price on the payment term when signing the when signing the provisional sale and purchase agreement, involving HKD 36,904,100, which was believed has been confiscated by the developer, according to the data. The insider believed the reason of forfeiture of initial deposit after only 10 days is not just looking down on property market, since the deposit was high up to tens of millions dollars. Instead, buyer was more likely had problems with cash flow under the fluctuation of global stock market recently,
It is know, this is the case has the second highest forfeiture of initial deposit amount after the implementation of the First Hand Residential Property Sales Ordinance in 2013. The case has the highest forfeiture of initial deposit amount was villa of POKFULAM PEAK in Mid Level West District in Last year, which is No. 92B villa that was originally sold in HKD 271 million including two parking spaces, but it went into forfeiture of initial deposit after three phases of deposit payment, involving 20% of the total property price amount to HKD 54.2 million.
In the case of property price relevant to forfeiture of initial deposit, it is the highest case in the past few years, higher than the HKD 299.9 million which was the transaction price of one forfeiture of initial deposit case from 39 Conduit Road in Mid Level West District in August 2017, and the initial deposit was 10% in about HKD 29.99 million.
Victoria Harbour sold one house in sq ft price of HKD 47,061 by bidding.
In addition, Wheelock's NAPA in So Kwun Wat of Tuen Mun just sold villa D16, which is in usable area of 1,786 sq ft, joining with 826 sq ft Garden and 465 sq ft rooftop, and the transaction price was HKD 28.5 million with usable area sq ft price in HKD15,957. Sun Hung Kai’s Victoria Harbour just sold a four rooms unit Room B on 6th floor in block 2 in HKD 69.038 million with usable area sq ft price in HKD 47,061 by bidding, base on the usable area in 1,467 sq ft.
In addition, the "Store King" Deng Chengbo family is actively purchasing the old property. Cedar Street No.4, 6, 8 and 10 in Mong Kok aged nearly 60 years recently sold 22 units to the Chairman of the UPPER ZONE Group, Mr. Deng Yaosheng, in a private name, with transaction prices from HKD 2.01 million to HKD 14.55 million and the usable area sq ft prices from about HKD 13,000 to HKD 14,000, involving a total of HKD 148 million, according to the data from Land Registry.
The Paragon has collected 7500 applications, exceeding 14 times of the quota.
In other new projects, market source pointed, The Carmel in Tuen Mun had collected more than 150 applications until 8:00pm last night, exceeding two times of the quota which was 50 units in the first batch. Victoria Harbour recorded the first large-scale transaction, which was room B on 6th floor in block 2 being sold by bidding in HKD 69.038 million with average sq ft price of HKD 47,061 base on usable area of 1,467 sq ft.
In addition, the Paragon in Tai Po has collected more than 7,500 applications, exceeding 14 times of the quota base on 486 units being put on sale on Saturday, .