Political and economic situation is grim, leading the second-hand property prices to go backward.
(by Lai ChiTin)
Hong Kong economy is facing severe challenges, leading owners' intention to hold property to be tested, and there are more and more sales or transactions with price cut in the market, with down range up to one million HKD, further more, some transaction prices were even lower than the peak level in last year. Recently, a owner of three-bedroom with suite in indexing housing estate South Horizons, Ap Lei Chau, Hong Kong Island cut nearly one million HKD to sell the flat at HKD9 million, down HKD1.48 million or 14% than that of the same kind flat in this May; While a one-bedroom top floor unit in Yoho Midtown, Yuen Long was accumulatively cut by two million HKD and sold at HKD6.5 million, back to the level at the beginning of the year.
Low KangHo of Centaline Property expresses, the trading of South Horizons in Ap Lei Chau turned to dull recently, the latest unit being sold is room A on the low level of block 15, which is three-bedroom with suite in usable area of 623 sq ft. The original owner had asked for HKD9.98 million, but finally cut HKD0.98 million or 9.8% to sell at HKD9 million, with the sq ft price at HKD14,446. It is reported that, a low-rise room C in block 15 of the same type with above unit was sold in May this year at a price of HKD10.48 million, showing the transaction price this time was lower HKD1.48 million or 14% than earlier.
The transaction price of three-bedroom unit in Mei Foo Sun Chuen returned to the level of a year ago.
Low KangHo added, the sale prices of similar units in July last year were about HKD10.6-10.7 million, so the transaction price this time dropped by about 16% from the high level. Going through the data, the original owner bought it at HKD3.57 million in August 1996, earning book profit of HKD5.43 million after holding for 23 years, and the appreciation is 152%.
As for the Kowloon District, Lam HoiShing from Midland reveals, Mei Foo Sun Chuen in Lai Chi Kok recently recorded a transaction of high-rise room D in No. 120 Broadway Street phase 8, and it is a 674 sq ft three-bedroom unit being sold at HKD9.78 million last week, with the sq ft price at HKD14,510.
Lam HoiShing points out that, the transaction price is the same as that in high level of the similar units last July, and current properties for sale of this project has already lowered the prices, for example, owner of a high-rise room D of No.15 Glee Path in 705 sq ft had asked for HKD10.6 million, but decreased to HKD10 million for sale seeing the market situation was worse.
Yoho Midtown has transaction in price cut up to two million HKD.
The decline of the transaction prices in New Territories West even larger being affected by violent demonstrations recently. Chen YikHei from Ricacorp discloses, the market recently recorded a transaction of top floor unit in block 6 of Yoho Midtown in Yuen Long, and it is a one-bedroom flat in usable area of about 399 sq ft, besides it had been put on sale in June 2018 at HKD8.5 million, but was cut to HKD6.88 million at the end of this July, also finally was sold at HKD6.5 million recently, with the accumulative price cut up to HKD2 million or about 24%, back to the level at the beginning of the year, leading the sq ft price to about HKD16,291. The book profit is about HKD1.432 million or about 28% after being held for 5 years.
Going through the data, the high price transaction for one-bedroom of the same project was case of high-rise room A in block 3 being sold at HKD7.06 million in this May, and the above latest transaction price was lower about 8%; while current property price has fallen by about 11% compared with the new high record of HKD7.3 million last year.
Caribbean Coast sold one unit at HKD6.1 million, lower 9% than the high level in the last year.
Housing estates in Tung Chung Estate close to the Hong Kong-Zhuhai-Macao Bridge also have transactions at prices lower than the market level. Lam YikBun from Centaline Property expresses, Tung Chung District has recorded a total of about 21 transactions this month, and many owners are willing to expand the bargaining space or even to sell by prices lower than the market level currently, leading buyers’ decision to enter the market to b significantly accelerated recently.
Lam YikBun expresses, their branch recorded a transaction of low-rise room E in block 5 of Caribbean Coast, and it is two-bedroom unit in usable area of 518 sq ft, besides it had been asked for HKD6.4 million but was cut HKD0.3 million or 4.7% to HKD6.1 million and sold, with the usable area sq ft price at HKD11,776. Lam YikBun adds, the cost of the above-mentioned similar units last year was about HKD6.6-6.7 million, so the price this time dropped by about 9% from last year's high.
