UPPER EAST launches 202 units; Developer: "Parking spot price" benefits Hong Kong people.
Kong Wen Wei Po News (By Leong Wai Chung)
Ignoring recently global stock market crash, developer keeps launching new project. Kowloon Development's Hung Hom Upper East which includes 36 units on one floor published the first price list of 202 units yesterday, open style units in 197 sq ft among is less than HKD 3 million after discount. Developer claims selling property at parking spot price, also supplying 95% mortgage, and they believed " room in room" is Hong Kong style, so they don't mind being called "city of room in room".
This project yesterday published the first price list of 202 units, including 111 open style units, 73 one room units, and 18 one room with storage units, and the sale prices are from HKD 3.449 million to HKD 7.444 million, with usable area sq ft prices from HKD 15,342 to HKD 20,579 and average sq ft price at HKD 18,101, besides the market value is about HKD 1 billion. The highest discount is 14%, and the average sq ft price is HKD 15,567 after discount. The cheapest open style unit is room H in 5th floor block 1B, which in usable area of 197 sq ft and prices HKD 3.449 million with sq ft price at HKD 17,508, and it is HKD 2.966 million with sq ft price at HKD 15,056 after discount.
The most preferential sq ft price still exceeds HKD 15 thousand.
Comparing with first hand new project in same district before stock market crash, it is higher than discounted average sq ft prices of China Overseas Land & Investment My Place, Kerry Bayview, and Henderson Metro, while only lower to of Cheung Kong La Lumiere. Synthesizing market information, in this district, the average sq ft price of relatively new residences is between HKD 15.2 thousand and HKD 17.6 thousand. Comparing with older large projects like Jubilant Place at usable area sq ft price about HKD 10.6 thousand and Wyler Gardens at usable area sq ft price of about HKD 11 thousand, it is higher by 40%-50%.
Kowloon Development marketing and sales general manager Yang Chung Wing described, pricing is cheaper than market price this time aims to promotion with discount in nearly 25%, and it even is parking spot price in same district, also the pricing is not related to stock market crash, because they can supply lower price base on cheaper cost of purchasing old building, but price will be increased to market level in future, while they refused to disclosed purchasing cost and development cost saying it is commercial secret.
Yang Chung Wing: Price of additional launched units will rise.
About 36 units on one floor, he frankly said " room in room" is Hong Kong style, so they don't mind being called "city of room in room".
Small-medium residence is in good sale before stock market crash, while this project takes the first to cut price and prices lower by more than 20% than prediction, Centaline Asian Pacific Region Residential Department President Chen Wing Kit pointed. Stock market crash made buyers wait and see, so developer has to attract customers by irresistible price, and he estimated this project will grab 30% customers from other new projects suit to fist housing people that will open in following one or two days.
Low price to attract customers after stock market crash.
Stock market crash recently benefits funds turns to property market, plus with small cost new supply in down town is lack, and residence at about HKD 3 million including secondary mortgage and 95% mortgage is rare, so it will attract first housing people who has limited down payment, Midland director Kwok Yuk Moon expressed.
Developer's financial company can supply secondary mortgage at up to 35% for buyer, also there are banks willing to offer first mortgage and secondary mortgage with accumulated percentage up to 95%, which means only HKD 0.15 million is enough. While during the stock market crash, there is analysis pointed each stock market crash will drag down property price by 10%-50% in prediction.
Property becomes negative asset if price down by 10% .
Base on the lowest price is HKD 3 million in Upper East, first housing customers want 95% mortgage and borrow HKD 2.85 million from bank by first and secondary mortgage plan, then their house immediately become negative asset if property price down 10%, to say the least, if buyer wants 70% mortgage and price down for three years, which means each year down by about 10% in pre-sale period, then the house will become negative asset before hand over. So it is privilege or loss deal is still unknown.
