(By Yan Lunle)
The property market continues to slump affected by the festive atmosphere and the lack of positive factors in the market, and the second-hand residential property transaction number on the past Saturday and Sunday had been up and down at a low level. Centaline Property announces that ten leading housing estates recorded 5 transactions in the past two days (28-29th), and more than half of the housing estates had zero transaction, also the number was in low level and has been in single-digit level for 8 consecutive weeks although the number of total transactions rose by 66.7% compared with the 3 cases in last week.
Centaline Property and Midland continued to record single-digital transactions in ten leading housing estates.
The APAC Vice President and Residential Department President of Centaline Property, Chen Wing-kit yesterday expressed that, buyers and sellers have resumed normal houses visiting activities in succession after the Christmas holiday, and the sales of the first-hand inventory properties are good, so it is estimated the property market is in positive development. However, a large amount of the second-hand purchasing power in the market was transferred because the recent market has focused on the first-hand projects in New Territories West and the application for a new batch of Green form HOS Houses begins, so it is expected the second-hand property trading will gradually return to a normal level.
According to the statistics of another agency Midland Real Estate Branch, in the past two days, the transactions in the top ten second-hand blue-chip housing estates were recorded of 5 cases, up 25% by week, and the number has been in single-digit level for eight consecutive weekends. The Chief Executive of the Midland Real Estate Residential Department, Po Siuming expresses, new projects offering prices attract a large number of potential buyers to visit the sample flats on weekend, while the second-hand property transactions are still up and down in low level, besides there are many owners and prospective buyers haven't returned back in the last weekend of the year due to the holidays of Christmas and New Year, so the trading continues dull.
In terms of other agencies, Hong Kong Property Services recorded the transactions of the ten leading housing estates in the past two days rising by one time per week and reaching an 8-week new high although it was only 6 cases. According to the network data from Ricacorp's branch, the second-hand property transactions of the ten leading housing estates in the past two days were 4 cases, up by 1 or 33% than 3 cases in last week, and it has been in single-digital level for eight weekends.
The President of Ricacorp Properties, Liao Wai-keung expresses, the "social movement" in Hong Kong has not yet completely subsided, and the number of second-hand property transactions has not made relatively good progress, so the trading is relatively dull. The Chief Executive Officer of Hong Kong Property Services, Lee Chi-Shing believes, the lunar New Year has always been a traditional off-season, so the second-hand property transactions may be affected in January next year, while the property prices are expected to be stable.
The low-rise unit in Kingswood Villas was cut by HKD1.15 million.
The second-hand property transactions were recorded with price cuts in housing estates of all districts, including starter homes project Kingswood Villas in Tin Shui Wai which is next to a new project on sale. Lam Ka-lun from Manywells expresses, low-rise room B of 633 sq ft in block 11 of Locwood Court was finally sold for HKD5.85 million after many price cuts from the original offered price of HKD7 million, with a price cut of HKD1.15 million or 16.4%. The original owner bought it for HKD3.3 million in October 2013, earning book profit of HKD2.55 million in 6 years.
Greenknoll Court in Kwai Chung also recorded transactions with a price cut. Hui Wai-yip from Centaline expresses, high-rise room C of 456 sq ft in block 2 was asked for HKD6.6 million in April, then was adjusted to HKD6.35 million in November according to the market changes, and it finally was sold recently after the counteroffer for HKD5.788 million, down HKD0.812 million or 12.3% from the asking price in April, with the discounted sq ft price at HKD12,693. The valuation of the unit was about HKD6.2 million, and the current price is about 6.6% lower than the valuation.
Three-bedroom unit in Century Link was sold with loss.
Chen Yuk-ming from Centaline expresses, a low-rise room 7 of 588 sq ft in block 1A of Century Link in Tung Chung, in layout of three-bedroom with suite, was asked for HKD8 million, while was cut to HKD6.88 million and sold by the owner who found out the second-hand property market was dull at the end of the year, with the discounted sq ft price at HKD11,701. The original owner bought it for HKD6.688 million in October 2015, earning book profit of HKD0.192 million or 3%, but it is estimated to lose over HKD0.15 million or 2% after deducting taxes and miscellaneous expenses.
