(by Li Zitian)
The comeback of violent protest and the aggravation of Sino-US frictions have impacted the market confidence and dragged down the second-hand property prices. The Centa-City Leading Index (CCL), which reflects the second-hand property prices, is reported of 178.64 points, down 0.89% weekly, and a turn after four weeks of rising. The company analyzes that local social events may temporarily affect the property market sentiment, and it is expected that property prices will continue to increase. The luxury housing market is under pressure. Ultima in Ho Man Tin sold a four-bedroom unit for a low price of HKD83.88 million. The mainland owner lost nearly HKD10 million on book profit.
The Central Plains report expresses that the latest CCL is 178.64 points, a weekly decrease of 0.89%. The leading index of large housing estates, CCL Mass, is reported at 182.23 points, which is down to 0.89% weekly. CCL (small and medium-sized units) is reported at 179.84 points, down 0.82% weekly. CCL, CCL Mass, and CCL (medium and small units) drop slightly after four weeks of continuous rising. CCL (large units) is reported at172.30 points, down 1.30% weekly, and it drops after a two-week rising.
The Senior Co-director of Centaline Research Department, Woo Leung-Sing, points out that the four leading CCL indexes all drop this week after a two-week all rising. There is a sign of local social events coming back, temporarily affecting the property market sentiment, and it is expected that property prices will continue to increase. On June 11, the Fed expected to maintain zero interest rates and easing policies until the end of 2022. The impact on Hong Kong property prices will only be reflected in the CCL announced in early July 2020.
Property prices rose in the three districts and dropped in one district this week. The property price index in Kowloon is reported at 179.80 points, a new 37-week high, and up 0.49% by week. The property price index in Hong Kong Island is reported at 185.13 points, a weekly decrease of 3.45%, the most significant drop in 52 weeks, and falling after a four-week rising. Affected by social events, property prices in Hong Kong Island are more volatile. The property price index in New Territories East is reported at 193.89 points, a weekly decrease of 0.15%, the smallest drop in 7 weeks, and falling after a three-week rising. The property price index in New Territories West is reported at 163.61 points, a weekly decrease of 0.42%, the smallest drop in 10 weeks. And the falling in New Territories two districts is smaller.
After the May Day holiday, property prices have risen for four weeks. CCL had increased by 1.54%, CCL Mass had increased by 1.95%, CCL (small and medium units) had risen by 1.80%, and CCL (large units) had increased by 0.09%.
Seller in Ultima lost HKD9.48 million in 5 years.
The luxury housing market continues to be suppressed, and more transactions with losses are recorded. A real estate agent revealed that the market recorded a deal with loss in high-rise Room A in Block 6 of Ultima. It is a four-bedroom unit in a usable area of 2,018 sq ft, and sold for HKD83.88 million, with the usable area sq ft price at about HKD41,628. According to information from the Land Registry, the original owner bought it for HKD93.369 million in 2015 and registered it in the name of an individual. A registrant is a person in the last-name of Tin. The book loses in 5 years is HKD9.48 million, and the house had depreciated by about 10%. The agent also pointed out that the original owner owns many luxury properties.
