Once a time, houses at HKD 4 million are the “gift for poor people”. Under the situation of strict measures and banks’ increasing interest, owner of second hand house willing to decrease price made the property market sliding down and barely units at HKD 3 million appeared. There was analysis believed, government suppressing the demand made property market turn to a trend of user leading. The property market stop rising. As the increased units being launched, the pressure of market falling down is strengthen.
“ New Residential Property Sales Regulations” has been implemented from yesterday. Property market sharply frozen because of government’s multiple strict measures in earlier and negative effect from the banks’ increasing interest. Some agent said frankly, there will be only two new projects launched to the market tomorrow when will be the worst May Day holiday in history. In fact, buyers in current market is bipolar. One is rich who ignores the strict measures but this kind of people are only in tiny minority. Another is young new user who has no any property but this kind of user has limit fund which only can afford unit at small cost. Some of second hand house owners who asked for high price in earlier also decreased the quotation to attract the young new users. This made number of units between HKD 2 million and HKD 3 million which suit to young new buyers increased. Most of the units which suit to young new buyers are located in New Territories.
Synthesizing the latest dealing and quotation information, most of the units between HKD 2 million and HKD 3 million which suit to young new buyers are located in New Territories. Many among are large index projects. Li Can-qiang from Midland expressed, Kingswood Villas in Tin Shui Wai has about 180 of two rooms units under HKD 3 million currently. The flat source increased about 10% while the price decreased 5%-8% in average. The average usable area sq ft price is about HKD 6,000. Thereinto, room F, middle floor, building 7 of Lynwood Court asked for HKD 2.75 million originally but cut price to HKD 2.55 million currently with a range of 7.3%. This unit is in cover area of 576 sq ft and usable area in 442 sq ft. The layout of it is two rooms. The units under HKD 3 million which are being put on sale are about 40% of the total on sale units.
City One , another blue chip project also has unit at HKD 3 million being put on sale. The price fell 10% than the high price of sold unit which in same kind. High floor unit in 44th building among of which the usable area is 304 sq ft asked for HKD 3 million. Its price lower 13% than the price of room C, middle floor, 45th building which was same kind and sold at HKD 3.448 million. Some agent pointed, currently the price obviously decreased 5%-10% in the district, but on sale units lower than HKD 3 million are only in tiny minority which only took 2%-3% of 150 of total on sale units. The price still be supported in a certain degree.
Unit in Tai Po Centre decreased HKD 400,000 and sold.
Fang Han-da from Centaline Property expressed, room E, high floor, building 4 in Tai Po Centre of which the usable area is 299 sq ft asked for HKD 3.4 million in January but decreased to HKD 3.2 million this month seeing the recent market is dull. The original owner decreased the price to HKD 3 million when negotiation and sold the unit. The total price cut is HKD 400,000 at range of 11.8%. The average usable area sq ft price was HKD 10,033. The buyer is a new family from same district. It is known that, the original owner bought the unit at HKD 2.13 million in January 2011 and earned book profit about HKD 870,000 from this reselling after holding the unit more than two years. The appreciation of the unit is about 40.8%.
Feng Yu-cheng from Golden Dragon Property Agent Limited pointed, second hand house owners in Fanling accepted the reality currently in succession. Price of many private projects obviously decreased, and some even dropped to level of under HKD 3 million. Middle floor unit in building 5, Flora Plaza of which the usable area is 390 sq ft asked for HKD 3 million at first and decreased to HKD 2.88 million currently with a decreasing range of 4%. In addition, middle unit of building 6 of Avon Park in same district of which the usable area is 458 sq ft asked for HKD 3.1 million and cut to HKD 3 million currently with a decreasing range of 3.2%. On sale units under HKD 3 million in the district currently are 30% of the all on sale units. It is estimated that the ratio will keep rising and price will back to reasonable level step by step.
