Property prices stabilized, but luxury houses did not benefit.
The COVID-19 epidemic has improved, and property prices have stabilized. Recently, a booming market that has not seen for a long time appears in the first-hand property market. However, luxury housing trading is weak, and some housing estates have transactions with loss in succession. The market source points out that one high-rise unit of 650 sq ft in Gramercy of Midlevels West was sold for about HKD18 million, depreciation of about 9.5% from the purchase price in 2010. A same unit on the low-rise of this project also was sold for HKD15.6 million recently, and the depreciation is about 7% in ten years.
Journalist (Lai ChiTin)
According to market sources, a transaction of a high-rise Room A in Gramercy of Midlevels West was recorded with loss. It is a two-bedroom unit in a usable area of 650 sq ft and was sold for HKD18 million, with the usable area sq ft price at HKD27,692. It is reported that the unit was purchased in 2010 for about HKD19.9 million, nearly HKD1.9 million higher. The depreciation is about 9.5% during the period.
Besides, one low-rise two-bedroom Room A in usable area of 650 sq ft of the same housing estate was recorded being sold for HKD15.6 million, with the usable area sq ft price at HKD24,000. It is reported that the original owner purchased the unit for HKD16.79 million in 2010, and the depreciation for ten years on the book is HKD1.19 million or about 7%.
MOUNT PAVILIA recorded a transaction with loss. The sq ft price is HKD19062.
MOUNT PAVILIA in Clear Water Bay Road, which attracted many celebrities to the purchase, recently recorded transaction with loss. According to the Land Registry, a low-rise Room C in a usable area of 682 sq ft in Block 23 of MOUNT PAVILIA was sold for HKD13 million, with the usable area sq ft price at HKD19,062.
It is understood that the original owner bought the unit in 2017 for HKD12.822 million. The profit on the book is about HKD180,000. But the owner needs to pay SSD since the house had been held for less than three years. It is estimated that the owner may lose about HKD17 million after paying the stamp duty and commission. An agent in the district says that the above seller rushed to sell the house even there was stamp duty because of urgently in need of capital turnover.
A small unit in High Place has depreciated by 10% in five years.
The second-hand property market continued to record transactions with loss. One middle-rise unit in High Place of Ma Tau Kok was sold for HKD4.9 million, with the sq ft price at HKD19,368 base on the usable area in 253 sq ft, and the transaction price was about 10% lower than the purchase price of five years ago.
According to information from the Land Registry, High Park in Mong Kok also recorded a high-rise Room A being sold with loss. It is a three-bedroom unit in a usable area of 793 sq ft and was sold for HKD17.45 million this month.
The original owner bought the unit for HKD17.7 million in 2015, and the current book loss is HKD250,000. It is expected the loss will exceed HKD1.2 million if calculating the agency commission, stamp duty, and other expenses.
