2024-04-25 28Hse Editor
(Choi King-man) Although the first quarter of home price index prices rose by 5 per cent, the second-hand market remained sluggish due to the popular sales of new properties, with many owners facing profit loss when selling long-held units. The latest case of tragic loss comes from Mantin Heights in Ho Man Tin, a high-rise, two-bedroom seaview unit with a study room. The unit’s original owner held the flat for five years, selling it to a first-time homebuyer for HK$15.5 million, indicating HK$6 million below the original price, or 27 per cent in depreciation.
Under-valued properties abound in first quarter
Separately, Rex Chu, chief senior sales manager of the Mid-Levels branch at Hong Kong Property Services (Agency), said yesterday that the agency had just facilitated the sale and purchase of a two-bedroom unit with study room in Mantin Heights. The unit was put up for sale at HK$19 million for six months and was approached by a client from outside the area. After bargaining, the price was reduced by HK$3.5 million or about 18.4 per cent, and was sold for about HK$15.5 million at about HK$22,929 per square foot, which is about 27 per cent lower than the market price.
According to data provided, the original owner purchased the unit in January 2018 for approximately HK$21.5 million and resold the unit, booking a loss of approximately HK$6 million, representing a depreciation of approximately 28 per cent in property valuation.
The Waterside unit depreciates by 8.7 per cent in four years
In other districts, The Waterside in Ma On Shan also recorded a loss of 8.7 per cent following four years of ownership. Unit D, a 488-square-foot, two-room apartment in the upper floors of Block 1, was sold after bargaining for HK$6.85 million at HK$14,037 per square foot to a new buyer. It is understood that the original owner bought the flat in 2019 for HK$7.5 million and left the market with a loss of about HK$650,000, which depreciated the value of the flat by about 8.7 per cent during the period.
Park Central homeowner loses HK$260,000 in sale after five years of flat ownership
Eric Yeung, deputy regional sales manager of Centaline Property’s Tseung Kwan O branch at The Grandiose, also said that the branch has just facilitated a loss-making transaction. The unit, a 646-square-foot, three-bedroom suite in Room B on the middle floor of Block 12 in Park Central, was sold for HK$10.92 million, equivalent to $16,904 per square foot. The original owner bought the unit in 2018 for HK$11.18 million and lost HK$260,000, following five years of ownership.
St Martin unit depreciates by about 5 per cent in four years
St Martin in Pak Shek Kok, Tai Po also recorded a transaction that was held for four years and ultimately sold at a loss. The record involved unit A1, a one-bedroom flat on the middle floors of Block Five with an area of 379 square feet, which was offered at HK$6.8 million and sold at HK$6.56 million after bargaining at HK$17,309 per square foot. It is understood that the original owner bought the unit in 2019 for about HK$6.92 million and held it for four years, leaving at a loss of about HK$360,000, depreciating the value of the unit by about 5 per cent during the period.
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