2024-04-25 28Hse Editor
The US interest rate hike has narrowed to 0.25 per cent.
Coupled with stock market recovery and the return of customs clearance, one group of second-hand owners have raised asking prices, with an optimistic outlook of the market after news of the US interest rate hike was announced in the North Point of Hong Kong Island, a luxury housing estate in Victoria Harbor has seen several groups of buyers vying for bids. A large 3-bedroom unit, originally priced at HK$34 million, was sold for HK$35.28 million, with a whopping difference of HK$1.28 million.
Observing the market outlook and significant slowdown of rate hikes, another owner closed the listing for their 3-bedroom sea-view unit in Villa Esplanada, a large housing estate in Tsing Yi, New Territories, listed at a price of HK$16 million. Lai Tsz-tin.
Terry Chan Ka-hung of Centaline Property said that homebuyers have been quicker to enter the market, to purchase high-rise Room A in Block 5 of Harbor Glory, North Point. For a 1,048-square feet, 3-bedroom suite unit, several groups of buyers offered prices ranging from HK$34 million to HK$35.28 million, equivalent to HK$33,760 per square foot. The original owner bought the unit in 2017 for HK$37.78 million and held it for 6 years, with a loss of HK$2.5 million and a 7 per cent depreciation in the value of the unit.
Villa Esplanada plans to raise the price after closing
Centaline Property’s Kenneth Chiu Hung-wan also revealed that while the US Federal Reserve narrowed the range of interest rate hikes, Hong Kong banks have not followed suit for the time being, which offers promising news for the property market. In Taikoo Shing, Quarry Bay, individual owners took the lead in raising the asking price. Among them, the high-rise Room D of Tai Shan Mansion, with an area of 689 square feet, raised the asking price from HK$11 million to HK$11.5 million.
In the New Territories, Wilson Leung of Ricacorp Properties said that Room H in the upper floor of Block 5 of Villa Esplanada, Tsing Yi is accessible via agency viewing. The unit has an area of 853 square feet, with a 3-bedroom suite and storage room, enjoying a view of the Rambler Channel. The unit had earlier asked for HK$16 million to put up for sale. However, as the owner saw the pace of interest rate hikes slow down significantly, and second-hand transactions becoming more active after customs clearance, they decided to close the listing immediately and consider raising the price later to relaunch.
Leung also revealed that Room G on the lower floor of Block 5, Greenfield Garden, Tsing Yi, had an area of 365 square feet, with an original asking price of HK$5.78 million. The owner increased the price to HK$5.9 million for sale yesterday due to an optimistic market outlook.
Wings At Sea high-rise units raise prices by HK$250,000
In addition, Kason Cheng of Ricacorp said that according to company data, Tseung Kwan O has recorded at least 15 cases of reverse price closures in the first two days of February, half of which occurred following the Federal Reserve’s interest rate hike yesterday. Among them, Room C of the upper floor of Block 1B in Wings At Sea, Tseung Kwan O, covers an area of 489 square feet. Its original asking price was HK$8 million, and was adjusted to HK$8.25 million after the rate hike. In addition, the asking price for mid high-rise Room F, in Block 5 of Residence Oasis in Tseung Kwan O, rose from HK$7.8 million to HK$8 million.
Centaline Property’s Oscar O said while the U.S. interest rate hike has slowed, the city is looking forward to the end of the interest rate hike cycle, which is expected to further accelerate second-hand transactions. The latest record is that the middle floor Room C in Block 2 of Ocean Shores, Tseung Kwan O, with 505 square feet and 2 rooms, changed hands for HK$7.9 million, equivalent to HK$15,644 per square foot. It is reported that the original owner bought the site in January 2011 for HK$3.75 million and left with a profit of HK$4.15 million or 110 per cent at closing.
As for other areas, Centaline’s Ken Wong also revealed that individual owners in Yuen Long District have raised their listing prices. For example, the asking price for middle floor Room H of Block 1, The Spectra, with an area of 481 square feet, was raised from HK$7.6 million to HK$7.8 million.
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