(By Huang Jiaming)
Developers cut price to put on sale new projects grasping purchasing power from second hand property market, which made the property price indexes all dropped second time in six weeks. The latest CCL is 120.84 which fell 0.91% by week following four weeks' rising. As for large housing, the CCL Mass is 120.39 which dropped 0.77% weekly after rising for two weeks.
CCL has rose and fallen at 120 for 24 weeks.
Huang Liangsheng, the Senior Associate Director of Centaline Property Research Department pointed, CCL has rose and fallen around 120 for 24 weeks after the DSD (Double Stamp Duty). All indexes in four large districts fell. Hong Kong Island fell 0.22% to 134.03 following three weeks' rising. Kowloon fell 1.7% to 116.49 being the lowest in 35 weeks. East New Territories fell 0.75% to 120.68 after rising for two weeks. West New Territories fell 0.17% to 102.88 following two weeks' rising.
It should bring benefit to Hong Kong property market from US neither delisting nor decreasing interest yet, but government expressed many times will not cancel strict measures, which made the transactions frozen and owners have to cut price. A owner of middle floor unit of Nam Fung Sun Chuen in Quarry Bay cut HKD 0.162 million and paid HKD 0.247 million for SSD during the transaction; Dawning Views in Fanling also has owner cut HKD 0.05 million and paid HKD 0.155 million for SSD selling a low floor unit at HKD 3.1 million.
Middle floor unit in Nam Fung Sun Chuen was decreased 3.2% on price and sold.
Wang Weiming from Midland expressed, some owners willing to sell houses even it needs to pay extra tax worrying the market falls. Room G in middle floor of building 11 of Nam Fung Sun Chuen in Quarry Bay, of which the cover area is 474 sq ft and the usable area is 391 sq ft was asked for HKD 5.1 million and sold at HKD 4.938 million finally, with the cover area sq ft price at HKD 10,418 and the usable area sq ft price at HKD 12,629, falling by 3.2%. The original owner bought the above house at about HKD 4.25 million in September 2012 and earned nearly HKD 0.441 million after SSD of HKD 0.247 million from the transaction, worrying the market falls less than one year later.
He Xin from Centaline expressed, Dawning Views in Fanling had transaction including SSD recently. Room A in low floor of building 5 of which the cover area is 522 sq ft and the usable area is 384 sq ft was sold at HKD3.1 million at price cut of HKD 0.05 million, with the cover area sq ft price at HKD 5,939 and the usable area sq ft price at HKD 8,073. It is known that, the original owner purchased this house at HKD 2.52 million in July 2012, and resold it after more than one year earning about HKD 0.425 million after SSD of HKD 0.155 million which is 5% of the price.
Unit of Sham Wan Towers brought profit in many times after price cut of HKD 0.3 million.
In addition, when market focus on first hand projects, owners cut price to sell out quickly seeing many users wait and see the second hand market. Roon D in high floor of building 2 of Sham Wan Towers in Ap Lei Chau of which the usable area is 474 sq ft and the cover area is 633 sq ft was cut to HKD 6.2 million from HKD 6.5 million with the usable area sq ft price at HKD 13,080, expressed by Lu Jinghao from Centaline. The original owner bought this property at HKD 3 million in February 2006 and earned book profit of HKD 3.2 million from this reselling, with property appreciation at more than 1 time.
