(By Zhao Jianqiang, Hongkong Wenwei po) With banks having increased interest rate, European financial crisis impacting global stock market and worries about rehabilitation houses, HK residential market has adjusted many times in the past weeks and some owners even decreased the price 4 times. Recent CCL registered a 99.07 point, a maximum weekly drop in 5 weeks by 0.74% as CCL Mass recorded 95.7 point. Lower than last week by 1.03%, it is the biggest drop in 13 weeks. Centaline Property Agency Limited believes adjustment period will last long.
The administration report included rehabilitation housing of 40,000 units of public-private ownership per year, several times larger than the previous 13,000 units. Relevant measures influence on property market trend remains unclear, but seen from the figures, HK property market has entered a 3rd adjustment period.
Centaline Property Agency Limited estimated a long adjustment period
Huang Liangsheng, associate director of research department, Centaline Property Agency Limited says global market plunge in September 22 led to a weak property market, resulting in fairly bigger adjustment. Centaline believes adjustment period will last long while CCL will remain high.
Centaline explains that CCL point yesterday (October 14) is calculated based on formal contracts signed between October 3 and 9. Among them over 80% buyers have signed temporary contracts between September 19 and 25. Therefore it largely reflects the market situation on September 19 and that of September 22 after market plunge. How administration report affected property price remains to be seen three weeks later based on the November 4th CCL point.
Kowloon CCL Mass hit a 27-week record
Centaline points after price adjustment in March and June, it takes 8 and 18 weeks respectively for CCL to surge and stabilize around 100 points. Huang Liangsheng expects that if property price will surge after this price change, CLL of 100 points will turn into a supportive factor to lead property price breakthrough above 100 points and remain high.
As for recent CCL Mass points, Kowloon district recorded 93.77 points, a weekly drop of 1.65% and the lowest in the past 27 weeks. Hong Kong island registered 109 points and weekly drop of 1.49%. That of East Area is 93.71 point with 1.39% weekly decrease as West Area surged 1.01% to 78.64 point.
Price decrease to attract buyers
With residential market adjustment, many property owners are willing to expand price bargain range or bring down the price. Wu Weiguang, regional manager of Midland Realty says a Room L in the 3rd building of Affluence Garden, Tuen Mun District was sold at HKD $1.73 million after 4 price cuts, equivalent to over 10% decrease of the original price with price per square foot at HKD $2,686.
Besides, a Room 1 at Healthy Gardens, North Point F building was sold at HKD $3.36 million after a serial price decrease of HKD $520,000 from the original HKD $3.88 million at June. Lin Longnan, senior branch business manager of Centaline says the transaction is 8% below market price while the owner gained HKD $1.58 million compared to HKD $1.78 million at November, 2008, an apperception of 89%. Huang Tingjie also says Room A at the top of Flora Court of 500 square feet was sold at HKD $5.75 million with a decrease of HKD $250,000.
