(By Ngan Lun Lok)
Recently, many new projects come out into the market, but second hand property owners are still strong on price. There are many unclear factors in external economy, leading people wait and see, thus second hand property transaction largely decreases. In the past two days, Centaline ten large housing projects only have 7 transactions, sharply down by 53.3% than15 transactions in former weekend, and only Taikoo Shing and Kingswood Villas had transactions, while others had no transaction. Property price still rises in each district, while Tuen Mun and Tsueng Kwan even occurred transaction at the latest peak price; Severn 8 in the Peak although had transaction at HKD 250 million after price cut of HKD 30 million, but the original owner still earned profit with the house appreciating 43% after six years.
New projects are being put on sale at market price taking over customers from second hand property market; While second hand property owners are powerful and strong on price leading transaction into stalemate, Centaline Property Asian Pacific Region Residential Department President Chen Wing Kit expressed. During the past weekend, only Taikoo Shing in Quarry Bay and Kingswood Villas in Tin Shui Wai had transactions, Kingswood Villas among registered 6 transactions, while four large indexing projects in Kowloon all had no transaction. Customers will not back and stable the second hand property transaction before Hong Kong Real Estate Association new project Heya Aqua being put on sale on this Saturday, he predicted.
Owners are strong on price so second hand property transaction is hard to break through the stalemate.
Ten blue-chip projects had about 9 transactions in the past two days, down about 40% comparing with 15 in former weekend, according to Midland statistics. First hand property market continues hot, but second hand property owners generally are strong with some of them only provide little negotiation space, so second hand property transaction is had to break through out since first hand projects are being launched at market price, Midland Residential Department Chief Executive Officer Po Siuming expressed. Unless second hand property owners give up some profit to stimulate the market or second hand property market will still dull in short term, he predicted.
First hand project comes out soon; Buyers wait and see.
Besides first hand project attracts market focus, stock market volatility make second hand property market dull, Ricacorp Properties President Liao Wai Keung pointed. This company registered 9 second hand property transactions in the past weekend among ten large indexing projects, down 10% than 10 transactions in former weekend. He pointed there is actual demand in property market, but buyers migrate between first hand property market and second hand property market. Especially currently many new projects will come out, so buyers are wait and see.
Property price still rises in each district, Tuen Mun Home Ownership property price breaks record again and again, Glorious Garden among green form price up to HKD 3 million firstly, which occurred in low floor room B block 3 in usable area of about 592 sq ft and at sale price at HKD 3.15 million with sq ft price at about HKD 5,321. The original owner bought it in 1999 by first hand at about HKD 0.8462 million, earning about HKD 2.3038 million after holding it for 16 years, and the house appreciates about 2.72 times.
Lung Mun Oasis block 7 low floor room D in usable area of 484 sq ft just sold at green form price of HKD 2.63 million, with sq ft price at about HKD 5,434, breaking the records of two rooms transaction price and average sq ft price in this project. The original owner bought this unit at HKD 0.8457 million in 1998, earning about HKD 1.7843 million from this reselling, and the unit appreciates about 2.11 times.
In addition, Tsueng Kwan Ocean Shores block 9 middle floor room F in usable area of 645 sq ft was sold at HKD 9.28 million after being cut from HKD 9.5 million, at price cut range of about 2.32%, and the sq ft price was about HKD 14,388, which is the highest sq ft price among three rooms units in this project, Centaline Ng Kam Kei pointed. The original owner bought the above house at HKD 4.32 million in March 2009 and earned profit of HKD 4.96 million with appreciation of more than 1.15 times after being held for more than 6 years.
