It has been the lowest in one and a half months for HKD4.78 million, down 7.2% in one week.
(by Li Zitian)
Hong Kong's economy is in recession, and the generally second-hand listing houses are unpopular, thus owners need to cut prices repeatedly to attract buyers, also there are transaction prices of back in time in Northwest New Territories where has strong demand for starter home. Kingswood Villas in Tin Shui Wai recently recorded a transaction below HKD5 million. A super high-rise unit was sold for HKD4.78 million, the lowest price in the housing estate since October, and the price was sharply down by 7.2% compared to the same style unit last week. As for Yoho Midtown in Yuen Long District and Sun Yuen Long Centre, there were transactions of price cut over HKD1 million recorded in succession, with decreases of about 14% and 17% respectively. Citizens who want to buy the first houses may be better to wait and see, and there would be a chance to buy a cheaper while large-scale unit under the downturn market.
According to market news, Kingswood Villas in Tin Shui Wai recorded a transaction of less than HKD5 million again. The unit is an extremely high-rise two-bedroom unit of 448 sq ft in block 2 of Locwood Court, and it recently was sold for HKD4.78 million, which is expected to be the lowest in the housing estate after October, and the sq ft price is HKD10,670. It is known that there was one high-rise unit in the same area of the same phase being sold for HKD5.15 million last week, thus the transaction price this time is lower about 7.2%.
Centaline: Housing transactions reduce by 20%.
Going through the data, the two-bedroom units in the same housing estate were about HKD4.7 million during October, and the cost of individual high-quality units at the same interval rose to about HKD5.5 million after the introduction of the new mortgage insurance measures. Ng Yiu-Cho of Centaline Property says that the housing estate temporarily recorded about 12 transactions, a decrease of about 10% to 20% over the same period, with an average sq ft price of about HKD10,434.
And the second-hand housing estates in adjacent district recorded transactions with price cuts, the range of which up to double digits. Leung Wai-kit of Ricacorp Properties expresses, high-rise three-bedroom unit room C of 615 sq ft in block 3 of Yoho Midtown in Yuen Long had been asked for HKD11 million by the original owner but was cut by HKD1.5 million or about 13.6% after negotiation, and finally was sold for HKD9.5 million, with the sq ft price at HKD15,447.
Sun Yuen Long Centre’s house was sold with price cut of HKD2 million.
In addition,Sun Yuen Long Centre also recorded a high-rise room D in block 5 that was sold with price cut. Chau Wai-hing from Ricacorp Properties expresses, it is 870 sq ft unit in layout of three-bedroom one-suit including store room, and it was sold to a buyer from the same district for own-occupation after price cut of HKD2 million of about 17%, with the sq ft price at HKD11,264.
It is worth noting that the economy is not ideal and the atmosphere in the second-hand property market is getting colder, especially in the popular housing estates suitable for the first housing people, and many owners need to negotiate with the buyers many times to facilitate the transaction. However, the drop in property prices has also made many owners want to change their properties and even challenge large-sized units. The latest housing intends survey by Hong Kong Property Services (see another article) also shows that the number of respondents planning to enter the market in the next year slightly increases quarterly 1.6% to nearly 40% (39.7%). However, here we might as well stop and think about that why not consider first some three-bedroom units below HKD6 million in the New Territories to reduce the cost of repayment if we don’t mind the location, and it at least can minimize the financial risk since the property prices trend is unknown.
The sq ft prices in the second-line CCL housing estates are lower than last year.
Comparing the changes in housing prices in various districts, the Senior Co-director of Centaline Research Department, Woo LeungSing pointed out earlier that the sq ft prices of multiple CCL housing estates had fallen below the level of the end of 2018 by the end of this year, and it concentrated in second-line housing estates in each district. Among them, the declines in the New Territories East CCL housing estates were generally more obvious and concentrated in the Tai Po District, such as Serenity Park and Classical Gardens, which temporarily fell 9.8% and 8.8% year-on-year respectively. The sq ft price in City One is stronger, and it is now 14% higher than the level at the end of 2018.
In the New Territories West, Kingswood Villas temporarily fell 3.2% year-on-year. The remaining second-line housing estates also experienced similar declines. Belvedere Garden temporarily fell 3.2%, Sun Yuen Long Centre fell 1.7% and Sun Tuen Mun Centre fell 1.0%. For the whole year, the New Territories West Property Price Index is the closest to that at the end of last year, with a temporary difference of only 1%.