By Tu Ruoben
Many potential buyers scrambled for the properties in Park Signature which were put on sale at price lower than HKD 2.5 million at the cheapest. The market insiders believed, since US delisting in advance brings pressure of interest rising and developers try to sell more, the pricing of new projects will be conservative and some even need to supply privilege to attract customers. Opening at low price may bring indexed effect to future market.Buyers may turn to first hand property which is at reasonable price. This may shrank the trading of second hand property and drag the second hand property price falling by more than 10% in the end of the year.
Many developers in succession put on sale the new projects after they gradually adapt to the Residential Properties(First-hand) Sales Ordinance which implemented in this April and master its requirement. Until now, brochures of 27 new projects and stock projects were uploaded. The price lists of 17 projects among have been announced. There will be 3 new projects in Yuen Long which are Park Villa, Hung Shui Kiu project and Sun Hung Kai's Riva including about 2,400 units will be put on sale in the following 4 months. Cheung Kong also will put on sale 4 large projects. The Rise in Tsuen Wan among will be put on sale on this weekend at the soonest. The other 3 which are Fung Yuen in Tai Po, LOHAS Park phase 3 in Tsueng Kwan and TW7 in Tsuen Wan supply totally 4,715 units. Plus with the first hand properties from other developers, there will be 10,000 units of new property supplied in the future 4 months.
The luxury property price estimated to fall by 10%; Small cost property is being focus.
Developers face pressure of decreasing price when the supply largely increased, but the price falling range will not be large. The property price fell by about 10% after the implement of the Ordinance, as the prediction from Guan Baolin, the Executive Director of Asia Standard International Group Limited in earlier. He predicted, the luxury property price which affected by tax measures most would fall by about 10% in the following one year, while the price of small-medium residential property would be stable because there were actual demand for small-medium residential property and the mortgage interest was still in low level.
The Senior Associate Director of Research Department of Centaline Property, Huang Liangsheng pointed when accepting interview from this news, developers would like to launch small cost property according to the market situation and under the consideration that government wishes there are more properties suitable to young new buyers, so it is estimated the price of first hand projects will be stable after a period of falling; Park Signature is popular which shows the market demand for small cost property is large and the price will not fall if it sells good.
Supply of first hand property largely increases; The opening price is close to the second hand property price.
The Managing Director of Residential Sales Department of Colliers International, Pan Weiji expressed, when the property market gets into the adjusting period, the pricing certainly will close to the second hand property price because there will be 10,000 first hand properties estimated to be put on sale in the next half year and developers eager to sell more; The overall property price will possible fall by 30%-35% in future 3-5 years caused by US rising interest and the supply of small-medium residential property increasing. It is believed that, developers face pressure of decreasing price to a level of 20% higher than second hand property price when the supply largely increases.
In contrast, the second hand property market is affected larger. The President of Asian Pacific Residential Department of Centaline Property, Chen Yongjie expressed, the second hand property trading quantity in New Territories West recently sharply decreased by 40%-50%, and the trading quantity in Yuen Long where Park Signature located in even fell by more than 50% with property price falling by 3%-5%; Tsuen Wan faced the similar situation. It is believed new projects are more popular than second hand property because of the attractive opening price. He predicted, the price and trading quantity of second hand property will keep falling and the price among may decrease by 10%-15% before the end of this year.
