Hong Kong customers support real estate market and are fond of single building property.
Kong Wen Wei Po News (By Zeng Minyi )
During three days for May Day Holiday, 219 first hand houses sold, up to the latest top since 2006. Thereinto, single building My Place in To Kwa Wan developed by URA (Urban Renewal Authority) and China Overseas Land & Investment sold all the units on its first day yesterday. However, there were less mainland customers. Bu Shaoming, the Midland Residential Department Chief Executive Officer pointed, the ratio of mainland customer has dropped to current 3% from 30% in 2008, so most first hand property market is supported by Hong Kong customers. Chen Yongjie, the Asian Pacific Region Residential Department President of Centaline Property expressed, Hong Kong stock has been in good trend in these months, thus citizens can use arbitrage of stocks as the down payment, and they predicted their commission will increase to HKD 300 million by monthly range of 35% in this month.
My Place accumulatively received 5,500 registrations, exceeding 32 times of the quota, and 164 units sold in less than four hours yesterday. Centaline customer attendance is about 70%-80%, 30% among are investors while others are users, and some even bought two units once with one for use and the other for renting, pushing the highest trading amount up to HKD 9 million, Chen Yongjie expressed The project is suitable to young new buyer, because the apartments are at prices from about HKD 3 million to HKD 5 million, which is much the same to price of house under Home Ownership, so its believed some focus to Home Ownership while failed will get into private property market, he pointed. 50% potential customers are from Kowloon, 30% are from Hong Kong Island, while 20% are from New Territories.
The rate of return will be estimated to be good.
Midland buyer attendance is about 80%, investors among is about 40%, expressed by Bu Shaoming. Small house suitable for own use and renting is popular in the market, plus with the rate of return of My Place is good, which is predicted to be HKD 45 each square feet with the rent of return in 3.5% since current square feet rent of private house in same district is about HKD 40, so demand of this style is huge. For customer distribution, about 50% are from Kowloon, about 40% are from New Territories, while about 10% are from Hong Kong Island.
Bull market leads house changing hot trend.
Besides, Chen Yongjie pointed first hand property transactions in last month was more than 2,550 cases, the highest in single month since Residential Properties (First-hand Sales) Ordinance implemented in 2013, and they earned commission up to HKD 215 million last month. He predicted stock market will drive property market, because citizens can use arbitrage of stocks to change houses, helping the sales of small cost houses between HKD 5 million to HKD 10 million, and their commission in May will up to HKD 300 million base on monthly up range of 35%.
Luxury property transactions increased during holiday.
Long holiday also brings hot transaction. Kowloon Development's MacPherson Residence in Mong Kok again gained buyer who bought two units once leading total transaction amount up to HKD 25.182 million, and the usable area of the house is 1,369 sq ft, while sq ft price was up to HKD 18,394. The project sold 11 units during three days. In Tai Po, 6 units above HKD 10 million of many luxury projects from Sino were sold during the holiday, threrinto, Providence Bay sold 5 units, and its room A in 9th floor of building 15 sold at transaction price of HKD 16.493 million, with the usable area sq ft price at HKD 11,892. The Graces Providence Bay in same district sold 1 garden feature unit in ground level, which is room A in building 7, and its price was HKD 22.0401 million with usable area sq ft price at HKD 13,879.
Henderson's The Hemispheres in North Point stimulated transaction by ready flat effect and sold 3 units yesterday while 4 units during the holiday. Thereinto, room E in 26th floor sold at HKD 11.152 million with the usable area sq ft price at HKD 22,947; Room D in 29th floor was HKD 7.09218 million with usable area sq ft price at HKD 24,711. Besides, source pointed High Park in same series which will be put on sale tomorrow received 20 registrations. EMPEROR IHL's Upton sold 1 unit yesterday, which is room 16E in usable area of 1,053 sq ft and at price of HKD 24.38 million with the usable area sq ft price at about HKD 23,153. The project has sold 95 residences and 21 parking lots, taking in cash of nearly HKD 2.49 billion.
