“1997 Hold up units” recover. 737 cases last year were profitable trading.

Zhou Man-jie, the director of Ricacorp Research Center expressed, although the property price in 2012 was rising and even the cost price of residential property in New Territories West nearly rose to the peak level of 1997, but cases that owner selling “1997 Hold up unit” for profit are obviously less than before. Because private house owners who hold the “1997 Hold up unit” choose to wait and earn more by the uptrend seeing the property price will rise in long term under condition of super inflation expectation warming up. Summing up the data of Ricacorp and found, Hong Kong only had 737 cases trading of “ Profitable hold up units in 1997” (Private residential properties profitably sold in 2012 after being always kept from 1997 when it was registered to be bought in the property market peak period) registered in 2012. The amount involved was about HKD 3.394 billion. Both were drop 18% comparing with the data in 2011 which were 900 cases and HKD 4.154 billion. It was clear that, citizens looked good to future market. Small price cases are the most during profitable cases. If classified by property price, the small price “Hold up unit” between HKD 2 million and HKD 5 million were the most during profitable cases. The accumulative register volume in last year was 411 cases which reduced 12% than the volume in 2011. The profitable cases of medium and high price “Hold up unit” between HKD 7 million and HKD 10 million were increased 17% by year to 62 cases. If classified by district, profitable cases of “Hold up unit” in HK island were still the most. There were 367 profitable cases registered in this district last year. But the volume decreased 21% comparing with 462 cases in 2011. Kowloon district had 217 cases which decreased 10% by year and ranked second. 153 owners chose to sale the houses and gave up more profit in New Territories last year. The volume decreased 22% than the number in 2011. Kennedy Town/Sai Ying Pun had 55 cases of reselling which ranked first. As for North point/Fortress Hill and Mong Kok/Yau Ma Tei, the profitable cases were separately 48 and 45 which ranked second and third. The rising range of luxury property price always higher than medium and small residential house’s. So the high profit cases registered in last season mostly were luxury houses. In fact, units of 10 top profitable cases are all located in luxury house area. The profit ratio were between 53% and 136%. Among, the unit in highest profit amount is located in room A, low floor of building B, Bellevue Court, Tai Hang, Happy Valley. The original owner bought the unit at HKD 18 million in April 1997 and sold at HKD 40 million in April last year. The unit was always being kept by the original owner. The book profit was HKD 2.2 million and the profit ratio was 122%. Zhou Man-jie pointed out, the medium and long term supply of local residential property will be lack, plus with Central Banks of Euro, US, China and japan kept launching QE last year, so current property price is not high under prediction of hyperinflation’s coming and hot money flowing. The property price will possibly rise 20%-30% at least. So it is estimated that, citizens’s intention of house holding is getting more stronger. It is believed that, the trading volume of “1997 hold up unit” in future one year will possibly decrease 30%-50% with the trend.

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