Article from (Reporter: Ngan LunLok, Wong KaMing) Although government has set up measures in the property market in recent months, the property price is still rising. The Centaline city leading (CCL) index for property price is 111.11, which means an accumulative rise of 16.38%. On one hand the cheap flats in Hong Kong island has an average price of more than HKD 10,000 per square feet, while on the other hand the flats which people bought in 1997 have not yet arrived to the level in that year. The topic of property price is just so hot!
The research department has releated the CCL yesterday of 111.11, which is a new high in consecutive 3 weeks. Senior co-director of Centaline Wong LeungSing explains that the rise is mainly due to the quantitative measures in Europe and the United States. According to information, when comparing with the 95.47 in January, CCL this year has accumulatively rise 16.38%, which is an 8% higher than in 1997 which was 102.93.
The high property price problem is already affecting the harmony of society. The new government has warned in July that if the price continues to rise, there will be more tightening measures coming out. People in the industry believes that since the rising trend is keeping up, HK government will release more measures in short-term period and so local citizens need to balance the risk.
1-room flat in Ka Wai Building has appreciated 60%
The most recent increase of property price is shocking and even flats with low quality have high records in transactions. In fact, behind the scene of high property price, there is a series of problem existed and people are getting harder to buy a home. For example, there is a A flat in Ka Wai Building which is located in North Point and has a seaview, although it has 28 years old and a size of only 335 square feet, the transaction price is HKD 3.22million and an average price of HKD 9,612 per square feet. The flat is only selling for HKD 2 million 2 years ago with an average price of HKD 5,970 per square feet. The appreciation has arrived 60% for such kind of flats.
A coin has double sides, indicating the bad situation in flats bought in 1997
On the other hand, there are still flats that bought in 1997 that are not in the rising trend, the experience of them is still make people sad.
According to information, apart from the famous Sea Crest Villa, there are many flats in Tuen Mun which flats are bought in 1997. Until now there are records of people selling the flats with money losing. For example Blossom Garden and Siu Hei Court are 2 of them. In particular for Blossom Garden, a F flat in lower floor level and in Tower 1 has an area of 518 square feet and is sold in HKD 2.25 million while the ex-holder of the flat bought it in 1997 with the price HKD 2.42 million which he lost HKD 170,000.
Flats sold are losing money, with 10% most
Flats in SunShine City in Ma On Shan and Discovery Park in Tsuen Wan are also having some available in losing money. Yeung ZhenTing in Ricardcorp Properties sais that phase 5 in SunShine City which has a D flat in low floor level in tower 3 has an area of 827 square feet, the ex-holder bought it with HKD 6.1 million and now sold for HKD 5.32 million. Among the 60 flats selling in SunShine City, there are still some of them available with the ex-owner losing money, while the amount loss has already been decreased by 10%.
Another C flat with middle floor level in tower 3 located in Ho Man Tin, it has an area of 853 square feet. The ex-owner has bought in 1997 with HKD 9.4 million while it has been recently sold at HKD 8.35 million.
