The reaction to biddings of many lands recently is disappointed and developers no longer offer high price, making people think of looking bad the market trend. At the same time, Centa-City Leading Index (CCL) which reflects Hong Kong property market trend is unstable, however many blue-chip projects registered transactions with latest highest sq ft price currently. Synthesizing various phenomenons of land location, transaction unit style, house data and so on, we found the property market appears polarization, so potential buyers should be more careful.
Too much land makes property in New Territories unmarketable.
In 2014, land bidding came across many shocks, for example, on top project in MTR Tin Wing Stop which failed on bidding last year faced its second failure when being relaunched in the beginning of this year after the term relaxation. In the meantime, bidding of newly Pak Shek Kok land in luxury property area also met difficulties, and in March it became the first failed land after government relaunched land bidding; To the end of last month, a nearby oceanside land was sold at floor area sq ft land price of HKD 3,300, lower about 17.5% than the floor of market prediction. As for Tseng Choi Street land in Tuen Mun, it was sold at sq ft land price of HKD 1,938 in the middle of last month, down to the lowest of Tuen Mun district in recent years.
However we should pay attention to that, down town land is hot recently, Shouson Hill Road West land in Southern District among was sold at floor area sq ft land price of up to HKD 30,888 in last month, getting into the top five of Hong Kong most expensive land list. About one narrow land in Schooner Street Wan Chai, it was sold at high price of HKD 233 million, with floor area sq ft price up to more than HKD 16 thousand, which shows down town land is expensive and popular.
Down town land is in high price because of lack supply.
To developers, down town residence always is marketable, plus with land supply is lack, so they have to purchase by huge sum of money, which not only caused crazy land price but also raised old project purchasing competition in down town. The reaction to many residential land biddings in New Territories is cool, because government had launched more than twenty lots of land from New Territories in this year, and many leading developers have large land stock in New Territories, so these lands are unmarketable.
Property price is stable. Small cost house is popular.
Another side, second hand property market appears latest highest sq ft price frequently, there into, one unit in usable area of 343 sq ft from Tsing Yi Garden in Tsing Yi was sold at HKD 3.88 million days before, with usable area sq ft price at HKD 11,312, the latest peak usable area sq ft price of the project. One middle floor unit of Home Ownership project Broadview Court in Aberdeen sold at green form price of HKD 3.78 million last month, with usable area sq ft price up to HKD 8,957, becoming the highest Home Ownership green form sq ft price in Southern District.
Among current second hand property transactions, most of them are at low-medium price of under HKD 6 million. Property price has not largely down after many years since government launched strict measures, so small cost house is the best choice for first housing customers who have urgent demand. Although the sq ft price is rising, but the whole price is affordable, so first housing buyers don't mind purchasing at high price. Market insider pointed, the transaction of high cost property is most affected under strict measures, so owners have to cut more price, leading CCL in unstable trend. Under above effects, there are differentiations of New Territories land is unmarketable, down town land is hot, CCL up and down, while second hand property appears highest sq ft prices.
(By Su Hongqiang)
