Grand Mayfair III Falls Short While woodis Shines | Hong Kong Property Market Recap

The Hong Kong property market has shown signs of improvement recently, with both transaction prices and volumes in the primary and secondary markets on the rise. Over the weekend, the new Wan Chai development, woodis, saw strong demand during its second round of sales. The 30 units on offer, priced at an average discounted rate of HK$25,000 per square foot, were sold out in a single day. This represents a 10% price increase compared to the first batch of units.

Meanwhile, data from major real estate agencies shows a significant uptick in transactions across the top 10 secondary housing estates. Notably, Centaline and Midland Realty recorded 18 to 19 deals each over the weekend, up by seven compared to the previous week. In Tseung Kwan O’s Metro City, prices have risen, with the latest transaction at HK$14,601 per square foot, representing a 3% month-on-month increase. 

Grand Mayfair III Falls Short 

In contrast, the second round of sales for Grand Mayfair III in Kam Sheung Road delivered mixed results. Of the 138 units released, only 74 were sold, accounting for 53% of the available stock. This fell short of the nearly sold-out success of the project’s first round. Despite being priced 20% lower than Grand Mayfair I and II, the project’s sales were hindered by concerns stemming from forfeited deposits for earlier phases, which saw 16% of transactions fall through. 

The highest price recorded during this round was for a 500-square-foot, two-bedroom unit on the 17th floor, which sold for HK$8.14 million at HK$16,283 per square foot. A notable transaction involved a buyer spending over HK$12 million to purchase two units together.

Wan Chai’s woodis Shines

The woodis project in Wan Chai continued its success over the weekend, with all 30 units in the second round sold out on Saturday. The average price for this batch reached HK$26,300 per square foot, generating HK$297 million in revenue for the developer. According to Henderson Land, 65% of buyers were end-users, while 35% were investors. Across two rounds, the project has sold 105 units, bringing in HK$1.06 billion.

In Jardine’s Lookout, the luxury development Dukes Place sold its final unit, a three-storey penthouse spanning 6,867 square feet with an additional 1,103-square-foot rooftop. The property changed hands for HK$420 million at HK$61,162 per square foot, with the developer earning over HK$4.2 billion from selling all 16 units in the project. 

Secondary Market Sees Moderate Gains

In the secondary market, transaction volumes across the top 10 housing estates surged over the weekend. Tseung Kwan O saw robust activity, with over 20 transactions recorded, marking one of the busiest weekends in recent months. Prices in the area have also stabilised, with Metro City reporting 12 deals this month, surpassing the nine recorded last month.

A recent transaction in Metro City Phase 2 involved a 363-square-foot, two-bedroom unit on a high floor, selling for HK$5.3 million at HK$14,601 per square foot. The original owner, who purchased the property in 2009 for HK$2.223 million, saw a profit of HK$3.077 million, appreciating 1.4 times. 

In Taikoo Shing, a rare duplex unit in Willow Mansion was sold with a tenancy agreement. The 1,072-square-foot, four-bedroom unit with a rooftop fetched HK$18.8 million at HK$17,537 per square foot. The buyer, an investor, will enjoy a rental yield of 3.3% based on the current monthly rent of HK$52,000. The original owner purchased the property in 2003 for HK$4.6 million, earning a profit of HK$14.2 million after holding it for 22 years, a 3.1x increase in value.

Losses in Tuen Mun’s Ocean Camino

While the market shows signs of recovery, some owners are still selling at a loss. In Tuen Mun’s Ocean Camino, a high-floor, 311-square-foot, one-bedroom unit recently sold for HK$2.8 million, or HK$9,003 per square foot. This represents a 50% decline in value compared to the HK$5.55 million the original owner paid in November 2019. Holding the property for six years, the seller incurred a loss of HK$2.75 million, effectively wiping out half the property’s value.

These mixed results suggest a cautiously optimistic outlook for the property market, with strong demand in some sectors offset by challenges in others.

28hse - No.1 HK Property Portal Squarefoot - HK Premium Property Portal