(by Lai ChiTin)
Amendment crisis enveloped Hong Kong. The second-hand property market, which once had appeared the sign of booming, was restored to its original form after the new mortgage insurance measures effect dissipated. A number of housing estates still saw transactions with sharply price cuts, including even Hong Kong Island properties. Among them, the North Point District recorded successively transactions that have price reductions of above one million HKD. An owner of a high-rise three-bedroom unit in City Garden planned to go to immigration because of social instability and sold the house for HKD12.28 million after a price cut of HKD1.52 million; While Full Wealth Garden in the same district recorded a transaction of high-rise unit in price reduction up to 13.8%, and it was sold for HKD6.9 million with a lease.
City Garden three-bedroom unit was cut by HKD1.52 million and sold.
Lam Loong-nam from Centaline Property discloses, the amendment crisis over the past months have made the property market more volatile, thus some owners intend to immigrate and want to sell their houses before the district council elections, trying to attract buyers by sharply price reduction. The transaction unit is high-rise Room C, Block 1, City Garden, North Point with an usable area of 792 sq ft and in three-bedroom layout.
The owner put on sale it for HKD13.8 million in September, and also planned to immigrate seeing the worsening social environment, then cut to HKD12 million which attracted many potential buyers to compete for, finally sold the house for HKD12.28 million, with total price reduction of HKD1.52 million or 11%, leading the sq ft price to HKD15,505.
Lam Loong-nam points out that, the original owner bought it for HKD7.2 million in February 2012, earning book profit of HKD5.08 million after holding for 7 years, and the property appreciation is 71%.
One house in Full Wealth Garden was reduced over 13% and sold with a lease.
The wait and see atmosphere is strong in the market, and the second-hand property trading is dominated by price reductions. Chen Coek-fung from Century 21 Sunrise Property expresses, they latest recorded a transaction in Full Wealth Garden, North Point, and it is high-rise Room F of Kam Gwai Court with a usable area of 459 sq ft. The original asking price of the unit was HKD8 million, and then it was reduced by HKD1.1 million, a decrease of 13.8%. It was eventually sold for HKD6.9 million with a lease, and the usable area sq ft price was HKD15,033. It is known, the original owner purchased the above house in July 2007 for HKD21.3 million, earning the book profit of HKD4.77 million after holding it until now, and the house had appreciated about 2.2 times in over 12 years.
