(reporter JiaMing Huang) Market continue rise recently and deals at new highest sq ft price being common. Owners in a great opportunity to resale the properties and earn much and some even can have the chance to choose a buyer. However, while most of the "brick" investors [ investors who interested in physical investment] fill up their pocket with profit, the market still has a few “hold up” units failed to meet new owners, such as Sea Crest Villa in Sham Tseng which is the representative example of this situation.
Agency in the district said, there are “hold up” units bought in 1997 in every average monthly deals, and at least 20% of the sale volume in current are bad bargains at normally range 30% which still is Hong Kong property market's "paradise lost". Recently, seems it can not find reasons for property prices fall and the market in highly optimistic attitude on future trend. Centa-City Leading Index (CCL) and Centa-City Leading Index for Mass House(CCL Mass) this week and continuous two weeks make historical new highest price. CCL rise 0.30% more this week and accumulated rise 1.82% in two weeks at the latest report 110.14 points. CCL Mass rise 0.62% more this week and accumulated rise 2.36% in two weeks at the latest report 108.55 points.
Agency: It is estimated that private properties made more than 60% profit last month. Actually, owner absolute not worry there less profit as long as they willing to sell. According to the earlier published research data of Ricacorp Properties, the private properties average profit is 56.1% in August which is the highest in history; And the ratio of resale cases earn profit in 1 time or more to second-hand private houses deals rise significantly from 15.4% in July to 18.2% in August. And many large housing estates resale profit ratio is 100% respectively are Kingswood Villas in Tin Shui Wai, Park Island and City One. Ricacorp Properties research department director ManJie Zhou said, according to the trend prediction, in statistical data of September which completed soon, the average profit of private properties sold maybe urgently jump and above 60% and continue to refresh the record.
Airport concept speculation Sea Crest Villa above HKD10,000 in 1997
Many large housing estates investment returns are rise without falling, but behind the scene, there is a "paradise lost" full of "Hold up" units in 1997 which is Sea Crest Villa in Sham Tseng. Many investors was seeing the good future of Sea Crest Villa in Sham Tseng district which near the new airport during peak season in 1997. Units of phase 5 on sale in middle of 1997 even at average admission sq ft price above HKD10,000 which make Sea Crest Villa equal to luxury house at that time. But after the financial crisis in 1997, plus with SARS in 2003 and financial tsunami in 2008, price of Sea Crest Villa is a world of difference with peak season in 1997.
Today, the Sea Crest Villa warm up follow by the market, but because the sq ft price is really anomaly high in 1997, price nowadays still more than 30% lower spread than in 1997. Building 1 in low floors offer sale price at HKD6.9 million include 34% loss. Universal (S.T.) Property Agency associate director YongHao Liang said, there are about 80 units in phase 1 to 5 in Sea Crest Villa now and 20% of them are " Hold up" units in 1997 and will be in bad bargains even they successful sold. Room A in low floor of building 1 belonged to phase 5 with cover area of 1,275 square feet, offer at HKD6.9 millions yuan. Since the buying rate is high and up to HKD10.45 millions in 1997, even success sold without price cut , the owner still loss HKD3.55 millions at a range of 34%. There are "hold up" unit owner loss HKD1.98 millions. Earnest Property Agency (EPA) branch manager Le Zhou said, randomly go through the second-hand deal record of Sea Crest Villa, it is easy to find a bad bargain.
The latest example is room D in low floor of building 11 belonged to phase 4 period with cover area 612 square feet deal at HKD3.468 millions and average sq ft price is HKD5,667 which is market reasonable deal. However, the original owner is "Hold up" unit owner in 1997 and bought the unit at HKD5.45 millions at that time. Now the unit depreciate 36.4% and the owner lost HKD1.982 millions . Surely, it seems unreachable to see the price of Sea Crest Villa go back to level of 1997. The owner must face the reality of loss if they want to sale out the unit currently. But there are also owners rent the units year after year to bring back nearly 3% to 3.5% of the rent rate return which is a little comfort in digital and psychological to the owner .
