Large customers bought properties for over hundreds of millions of HKD; One overseas Chinese customer even bought 12 units.
(By Leong Yuet Kam)
Federal Reserve System cutting interest rates by 0.25% as expected and new projects being put on sale by low prices stimulate the purchasing power to release. Ready project Cullinan West III on top of Nam Cheong Station which had collected 5,419 applications put on sale the first round of 352 units yesterday. Source points out that, 351 units were sold all day, and it was not only almost sold out but also appeared large customers in the name of the company. A group of overseas Chinese customer spent nearly HKD160 million in the name of the company to buy 12 units, paying strict tax at more than HKD47.8 million, and another group of large customer spent HKD150 million also in the name of the company to buy 6 units and paid HKD45 million for strict tax. As for Seaside Sonata in the same district developed by Cheung Kong and URA, it suddenly announced yesterday that their pre-sale consent had been gained and the sale will be arranged within the month.
Yesterday, Cullinan West III developed by SHKP and MTR put on sale 352 units, including open style to four bedroom units in areas of 275-1,513 sq ft, and discounted prices are HKD6.086-42.424 million. Each customer in large customers group A is limited to buy 2 to 3 units, one of which must be or above 1,500 sq ft and another one must be the designated unit; Each customer in individual customers group A is limited to buy 1 to 2 units.
As saw by a journalist at the site of the registration desk on the 3rd floor of the International Commerce Centre near Kowloon Station, large customers of group A arrived and registered at 9:30am, and source pointed out that 24 units had been sold during the period. At 10 am later, there was a queue of individual customers from Group B to the next floor, a quite lively scene.
Centaline: It drives the mid-price property market.
The APAC Vice President and Residential Department President of Centaline Property, Chen WingKit expresses, there was a group of large customer through their company to submit over 100 applications and finally spent HKD150 million to buy 6 units in the name of the company, paying strict tax of 30%, which is about HKD45 million. Another group of overseas Chinese customer spent more than HKD159.3 million also in the name of the company to buy 12 units, paying strict tax at over HKD47.8 million.
Chen WingKit also points out that, Cullinan West III stimulated the market by the price of two years ago, and it is visible that under the age of negative interest rates, there are still powerful people use the property as a tool to store wealth and drive the mid-price property market. He expresses, as the Sino-US trade negotiations have been slightly eased recently plus US once again cut interest rates by 25%, there are more transactions in September when new projects take the lead to cut prices by 15-20%, and the property market atmosphere has slightly improved, while there is still mainly demand from users, so the small and medium-sized units are popular.
The Chief Executive of the Midland Real Estate Residential Department, Po Siuming expresses, there was one large customer spent about HKD60 million to buy 3 units for investment and rent collection through their company. He believes, government's vacant tax legislation is imminent, plus the Sino-US trade war and social events have not subsided, so developers will be more aggressive in launching ready and stock units with price cut.
Seaside Sonata may upload brochure within the month.
On the other hand, the Assistant Chief Manager (business) of Cheung Kong, Ho KaYan expresses, Seaside Sonata in Cheung Sha Wan will likely upload brochure and offer prices within this month, with the prices will refer to market prices and that in the same district, and it will be the market acceptable price, besides there will be no less than 176 units for the first batch with most are two bedroom units. This project has totally 876 units, two bedroom units among account for 75% above 474 sq ft, and three bedroom units are about 750 sq ft, also there are feature units, besides the key date is expected to be June 30, 2021.
Upper River Bank collected enough applications on the first day.
The application for the first batch of 138 units of Upper River Bank which offered the highest price in Kai Tak the day before yesterday started since yesterday, and source points out that, about 195 applications were collected on the first day. The Marketing and Sales Director (Hong Kong and Overseas) of one of the developers KWG Property, Cheong SzeWan expresses, there will be additionally launch next week at the soonest, with prices may slightly increase, and the first round of sale will be held. Both mReferral Mortgage Brokerage Services and Centaline Mortgage provide two mortgage schemes for this project, including mortgage in rate as low as H+1.24%, with the upper limit in P-2.9%, leading the actual mortgage interest rate to 2.475%, also there will be cash rebate of 2.05%; Or there will be mortgage ratios up to 70% (or HKD35 million).
Source also points out that, until last night, Billion’s Aurora in Tsuen Wan had collected applications for its latest batch of 172 units in over 1,500 cases, an over-subscription of 7.7 times, and the sale will be held on Sunday. In addition, Henderson Land invites tenders for its room A on the 8th floor of block 8 of Double Cove Grandview in Ma On Shan, and it will be closed next Monday.
