Hong Kong Wen Wei Po (By Yan Lunle)
Property prices drop under the influence of a series of violent conflicts, and many transactions including price cut appeared in the market, with each price cut up to one million HKD. A housing unit in Castello, Sha Tin was largely cut by HKD1.8 million to HKD11.7 million with a price cut in 13%; Hang Fa Chuen, a blue-chip project in Chaiwan, also recorded one transaction in a price cut of HKD1.2 million, with the range up to 14%. In addition, some real estate agent points out that, there is owner who had refused cutting prices at the beginning from THE CAPITOL in Tsueng Kwan, finally cut nearly one million HKD seeing the market situation changed and sold at HKD8.22 million, with the sq ft price at HKD11,529, lower than the level of HKD12,000.
Ng Yuen-lei from Century21 Goodwin expresses, the transaction with price cut in Castello, Sha Tin was for high-rise room G in block 2, and it is a three-bedroom unit in 863 sq ft asking for HKD13.5 million at the beginning, then it was cut HKD1.8 million or 13.3% to HKD11.7 million, with the sq ft price at HKD13,557, beside the buyer is from the same district. It is known, the original owner bought it in August 2003 for about HKD3.12 million at that time.
Prices for low-rise units in Hang Fa Chuen returned to the level of two years ago.
Lee Shing-chi from Midland expresses, low-rise room 05 which is two-bedroom in 471 sq ft of block 9 in Hang Fa Chuen,Chaiwan including lease asked for about HKD8.3 million by the original owner in July, but the price finally was accumulatively cut by HKD1.2 million to HKD7.1 million, leading the property price to the level in the third quarter of 2017, with the sq ft price at HKD15,074. The original owner bought it in June 2010 for about HKD3.2 million.
THE CAPITOL in Tsueng Kwan also recorded a case of price reduction. Lam Chi-kin from Midland says, high-rise left-wing rooms A in block 3 in 713 sq ft was put on sale at the beginning of this month for HKD9.2 million, and recently there was a house changing customer from the same district bargained largely with the owner who had refused at the beginning but finally cut by HKD0.98 million to HKD8.22 million worrying the property prices would sharply down, and the sq ft price was HKD11,529, lower than the level of HKD 12,000. It is known, the original owner's purchase price in April 2015 was HKD6.6 million.
One-bedroom unit in The Spectra decreased HKD0.34 million in one and a half months.
In respect of other estates, according to the agent, The Spectra in Yuen Long recorded a transaction including price cut, and it is middle-rise room E in block 3 with the layout in one-bedroom and the area is 372 sq ft, while the original owner asked for HKD5.8 million at the beginning, but it was sold at HKD5.66 million after newly price cut of HKD0.14 million or 2.4%, leading the usable area sq ft price to HKD15,215, besides the similar style unit was sold at HKD6 million at the end of August.
HOS market which has strong pricing also has transactions with a price cut. Century 21 Hilltopland expresses, two-bedroom unit room H in low-rise of block 10 with area of 484 sq ft in Rhythm Garden, San Po Kong asked for HKD5.8 million at the beginning, and then cut HKD0.28 million or 4.8% to HKD5.52 million ( the second-hand HOS market price) to a green form buyer, leading the sq ft price to HKD11,405. The original owner purchased the above unit in 2010 for HKD1.51 million (without land premium).
Tenant of The Cullinan vacated the apartment only after one month.
The rental market is also weak. Market source points out that, The Cullinan in south-west Kowloon recorded a rare surrender of tenancy, which was for a high-rise one-bedroom unit in Streetar Sky, and it was rented out at monthly HKD34,000 at the beginning of September, but tenant required surrender of tenancy after renting only for one month, thus the tenant not only was confiscated by the owner for the deposit at a total of HKD68,000 equal to two months’ rent, but also may possibly be recovered for the remaining 11 months’ bad rent involving a total of about HKD374,000.
Cheong Chi-ho from Hong Kong Property expresses, Cullinan West II in Nam Cheong Station recorded a case of rent reduction, that is for high-rise room H in block 3B in layout of one-bedroom and area of 362 sq ft, and the owner had put on lease for about 2 months at monthly rent of HKD23,000, then it was cut HKD3,500 to HKD19,500 and rented out, with the sq ft rent price at HKD53.9 and the price cut in 15%. In addition, the Principal District Director of Hong Kong Property Services, Fang Man-wai says, medium-low-rise room F in block 1 of Aqua Marine, Lai Chi Kok with layout in two-bedroom and area in 494 sq ft, had been put on lease for about one month at about HKD20,000 by the owner before, while was finally reduced the rent by HKD2,000 or 10% to HKD18,000, leading the sq ft rent to HKD36.4, lower about 10% than market price.