Transactions with price cuts frequently appear in the market. The property prices of high-rise units in Sorrento return to the level of three years ago.
Some owners were willing to cut prices for sale due to the steady deterioration of the novel pneumonia epidemic, increasing the second-hand property transactions. According to statistics from real estate agents, there were 5 to 8 second-hand property transactions in the past two days (February 8 to February 9), a significant increase from last weekend. At the same time, cases of price reductions frequently appear. For example, yesterday, Mei Foo Sun Chuen recorded a transaction with a price reduction of HKD1 million, a decrease of 12.5%; a unit of Sorrento at Kowloon Station was sold at a price lower 10% than market level, returning to three years ago.
Hong Kong Wen Wei Po Journalist: Ngan Lun-lok
Transactions in blue-chip housing estates decline. Following a recent transaction with a price reduction of about HKD1.7 million at Whampoa Garden, Hung Hom days before, Mei Foo Sun Chuen in Lai Chi Kok also recorded a transaction with a sharp price cut yesterday. Fung Kin-Ping from Centaline points out that low-rise room D in No. 1 Mount Sterling Mall of Mei Foo Sun Chuen Phase 7, in usable area of 521 sq ft and layout of two-bedroom, was asked for HKD8 million by the original owner last month. Affected by the epidemic, the space for bargaining was gradually expanded. Eventually, it was sold to a first-housing customer for HKD7 million, with the usable area sq ft price at HKD13,436. It is reported that the original owner bought it in November 2006 for about HKD2.08 million.
Besides, the market source points out that high-rise room H in block 6 of Sorrento, Kowloon Station, in area of 757 sq ft, was sold for HKD19.5 million recently, with the average sq ft price at about HKD25,760, about 10% lower than the market level. The prices return to three years ago.
High-rise unit in The Wings phase 3B has reduced the price by 60%.
Centaline Property recorded seven transactions over the past two days on the weekend in ten leading housing estates. The number is four cases more or 133% of that in the previous weekend. The APAC Vice President and Residential Department President of Centaline Property, Chen Wing-Kit expresses, the house visiting activities have significantly reduced due to the novel pneumonia epidemic. But he says the base of Hong Kong's economy is good. Low-interest rate environment and the lowering of required reserve ratios from the People's Bank of China and so on are positive to housing. Plus, owners are willing to cut prices. He points out that the above factors make the transactions in ten leading housing estates rebound.
The Wings phase 3B in Tsueng Kwan also has one transaction with a price reduction. The market source points out that high-rise room A in block 1B had been asked for up to HKD48 million in February 2018, but the price had reduced to HKD26 million last September due to the worsening market conditions. Furthermore, the price declined again to HKD2.45 million at the beginning of this year. Finally, it was sold recently at HKD20.25 million, with the average sq ft price at about HKD18,113 base on the area of 1,118 sq ft. The price is 60% less than the asking price two years ago.
Property prices in Oceanaire, Ma On Shan, where residents have been diagnosed with the novel pneumonia are also affected. The market source points out that the original owner of middle-rise room D in block 1B, which is a three-bedroom unit in usable area of 736 sq ft, asked for HKD10.45 million in December last year. It was cut to HKD9.48 million and sold. The price reduction is HKD0.97 million or 9%, and the usable area sq ft price is HKD12,880, which is much the same as the transaction price of similar units two years ago.
Property prices in Hong Kong Garden have declined over 10% in half a year.
Tam Wing-Fai from Centaline expresses, low-rise three-bedroom room D in block 3 of Hong Kong Garden, Sham Tseng, in usable area of 561sq ft, had been asked for HKD6.9 million at the beginning. And it was sold to a first-housing customer from other district at HKD6.15 million after price reduction of HKD0.75 million, with the usable area sq ft price at HKD10,963. It is understood that, in the previous similar case, middle-rise room D in block 3 had been sold at HKD6.98 million last August, with the usable area sq ft price at HKD12,442. It reflects the costs of the same style units in this housing estate have decreased by about 12% in a half year.
The transaction volumes in ten leading housing estates through other agents also recorded an increase driven by the price reduction. Midland recorded eight transactions in ten leading housing estates. Although the number has been recorded in single-digital for four consecutive weekends, it has doubled compared with the previous weekend. Ricacorp Properties recorded eight transactions in ten leading housing estates. Hong Kong Property Services recorded five transactions in ten leading housing estates. Both these two agents had recorded a "zero transaction" on the previous weekend. In other words, the trading performance improved dramatically in the past weekend.
The Chief Executive of the Midland Real Estate Residential Department, Po Siuming expresses, the pace of individual prospective buyers entering the market has slowed down under the influence of the epidemic situation and economic uncertainty. However, there are still transactions in the first-hand property market and some transactions with a price reduction in the second-hand property market, reflecting that there is still rigid demand in the market. However, the trend of second-hand property market outlook is still subject to the epidemic situation and economic environment. He believes there is downward pressure on property prices.
Transactions in ten leading housing estates on the weekend.
Agent Transactions Weekly Performance
Centaline 7 ↑ 133%
Midland 8 ↑ 100%
Ricacorp 8 -( 0 in the previous)
Hong Kong Property 5 -( 0 in the previous)
Tabulation: Hong Kong Wen Wei Po Journalist: Ngan Lun-lok