(By Fang Chuyin)
Although government relaxed house changing term of DSD, but second hand property market is not stimulated. Ten large blue-chip projects of Midland registered about 17 transactions on last weekend, up 6.3% by week. Ten indexing projects from Ricacorp Properties had 15 transactions, down 6% by week, while ten housing projects of Centaline sold 18 units on last weekend, maintain flat by week. First hand property sale did not have good performance, with only 1 unit sold until 20:30 yesterday. About transactions decreasing, Liao Weiqiang who is the President of Ricacorp Properties pointed, second hand property transactions falling in the first weekend after DSD was relaxed mostly because owners are stronger on negotiation while users are not willing to compromise, leading both sides get into situation of pricing see-saw.
Owner temporarily rises price at HKD 50,000 because of not hurry to sell.
In the first weekend after DSD was relaxed, the activities of inquiry and visiting from house changing customers increase, showing buyers' optimism, but some owners not willing to cut price since they have more time to sell the house benefiting from the extension house changing term, plus with most good flats were digested by the market in earlier blocking buyers who want to find cheap properties, and large first hand projects in New Territories will be put on sale soon, so second hand property transactions will not have largely rise, pointed by Bu Shaoming, the Residential Department Chief Executive Officer of Midland. Second hand property transactions not rising reflects the amendment is not helpful to second hand property market temporarily, pointed by Chen Yongjie, the Asian Pacific Region Residential Department President of Centaline.
Under source of DSD house changing term being relaxed, transactions with price being turned back showed. Since both seller and buyer have larger confidence, middle floor room 2 in building E of Garden Vista in Sha Tin was sold at about HKD 6.65 million after price increasing by HKD 50,000, expressed by Guan Qifeng, the Sales Manager of Midland. This unit is in usable area of about 694 sq ft and in layout of three rooms with suite, the usable area sq ft price of which was about HKD 9,582. The buyer is user, and the original owner bought this unit at about HKD 4.11 million in January 2010 earning book profit of about HKD 2.54 million from this resales.
Unit of The Harbourfront Landmark sold with price cut of HKD 3.5 million.
There were still price cut transactions in the market although supported by relaxing DSD term. Middle floor room B in building 3 of The Harbourfront Landmark, in usable area of 1,580 sq ft and layout of four rooms double suites, was largely cut by HKD 3.5 million from HKD 38 million to HKD 3.45 million, with price cut range up to 9.2% and discounted usable area sq ft price at HKD 21,835, pointed by Bao Zhide, the Senior Region Sales Director of Centaline. The original owner bought the above house at HKD 20.87 million in May 2005 and earned book profit of HKD 13.63 million.
Only 1 unit of first hand property sold.
As for first hand property market, until 20:30 yesterday, only Swire Properties' MOUNT PARKER RESIDENCES in Quarry Bay Hong Kong Island uploaded 1 transaction, according to Sales of First-hand Residential Properties Electronic Platform (“SRPE”).
