Price cut among second-hand property continues, and bargaining space is rising.
The property market is weak, and the landlord’s bargaining space significantly increases in order for successful selling , resulting in price reductions in various districts. Blue-chip project City One in Sha Tin, just sold one unit at HKD 4.75 million, which is 20% lower than the price of HKD5.98 million in August. One house owner from Broadview Garden in Tuen Mun has reduced price for 7 times to HKD4.08 million within more than two months. Yuan transactions; Belvedere Garden in Tsuen Wan also sold a three-bedrooms unit only at HKD8.6 million, which is 15% lower than the high price of the same-type apartment this year.
Centaline Property Guan Yuyu said, high floor room B in build 40# from City One in Sha Tin, with usable area of 284 square feet and in layout of two rooms, was sold at HKD 4.75 million after many times of price cut from about HKD 5.98 million in this August, and the decrease was HKD1.23 million or 20% at usable area square feet price of HKD16,725. It is understood that, the original owner purchased the unit by HKD1.81 million in 2010, and earned book profit of HKD 2.94 million this time with property appreciation in about 1.6 times, after holding it for 8 years.
Chen Yongjie, Vice Chairman of Asia-Pacific region and President of residential department of Centaline Property said, the weekend sales for new projects was far from satisfactory, which affected the market sentiment and causing current buyers are very careful on purchasing, most of whom wish a larger price cut, and there are transaction done if the price of small cost house declines comparing to recently transactions. Bu Shaoming, chief executive of Midland Residential Department, also said, some landlords' attitude is softened, leading price cut transactions appeared in all districts, which also stimulate showroom visiting warming up. However, buyer’s confidence is still insufficient, and they are not willing to beat a bargain. It means buyers will be careful and wait and see in a short-term. So it is expected that second-hand property trading will inevitably continue to be pressed .
Broadview Garden unit was sold after large cut of HKD1.12 million.
In addition, high floor room H in block C of Broadview Garden in Tuen Mun is just sold. Lin Yingjie from Many Wells said, this unit in usable area of 378 square feet was put on sale at HKD 5.2 million in the beginning of September by the original owner, and its price had been declined by 6 times to HKD 4.1 million after then, finally it was sold at HKD 4.08 million after a last price cut by HKD 20,000 on the spot with square feet price at HKD10,794. The new buyer is a first purchasing customer in the same district.
There is also a low-price transaction in Belvedere Garden in Tsuen Wan. Medium floor room E of block 1 in Phase 3 with usable area of 728 square meters, according to the news, was just sold at HKD8.6 million at square feet price of HKD11,813. Comparing to the historical high price HKD10.1 million of the unit in same area from the same block in this August, this transaction price fell by HKD1.5 million or about 15%.
Shi Yufeng couples spent HKD560 million in property market.
Fan Zhenpei from Centaline Property expressed, high floor room 16 in block E from Telford Garden in Kowloon Bay, in usable area of 588 sq ft and layout of two rooms facing Lion Rock view, was sold at HKD 8 million with usable area sq ft price at HKD 13,605 after negotiation. New buyer is house changing buyer for other district. The original owner bought this unit at about HKD 465,000 in 1985 and earned book profit of HKD 7.535 million after holding it for 33 years.
Someone quit while someone rush to. On the other hand, according to the data from Land Registry, Shi Yufeng, one of the founders of Alibaba, purchased a middle floor room C, Block 2 from 8 Deep Water Bay Drive in Southern District from Nan Fung and Feng Zi Yuan development, by more than HKD 311 million in the end of this October with usable sq ft price at about HKD 74,000 base on usable area of 4,214 sq ft. It is worth to pay attention that, Shi Yufeng’s wife, Jin Yuanying, also purchased a room B in the same floor of nearby block at HKD 249 million last month. Which is 3,641 square feet. And the transaction price was over HKD249 million at usable area sq ft price of HKD68,000. In other words, the Shi Yufeng couples spent a total of HKD560 million yuan to enter the property market.
Chen Yongjie believes, besides sellers of low cost houses, there are very few owners of the medium cost houses and luxury houses willing to cut price, so only a few transactions recorded among that kinds of property.
