Stock market is unrest; Property market suffuses wait and see atmosphere; New projects grab customers.
(By Ngan Lun Lok)
No matter owners or potential buyers wait and see the trend, because global stock market crashed last week and many new projects arrange sales also FOMC meetings will start more than ten days later. In the past weekend, transaction of ten large housing projects roundly fell, leading property market almost freeze. Centaline Property ten large housing projects only registered 4 transactions, down 33.3% by week, which has been under 10 for five weeks, and up to 8 projects have zero transaction. Industry predicted, second hand property transaction will keep in floor level in short term.
In the past weekend, only Sha Tin City One and Tin Shui Wai Kingswood Villas among ten large housing projects each sold 2 units, other eight projects have no transaction, and HK & Kowloon indexing projects have no transaction reported, Centaline statistics pointed. Recently, many small cost new projects suit to first housing people are being launched, causing second hand property out in the cold, Centaline Property Asian Pacific Region Residential Department President Chen Wing Kit expressed. Another side, external economy trend is unclear, which not only hit investment bust also affect users' housing confidence, leading second hand property transaction suppressed further.
Housing plan decreases under worry of stock market trend.
Ricacorp Properties ten large housing projects have 5 transactions in the past weekend, sharply down by 55% than 11 in former weekend, and it also the lowest among the past 19 weekends. Global stock market crash evaporates funds and brings worry to market also it suppress property transaction, leading potential buyers wait and see, Ricacorp Properties President Liao Wai Keung expressed.
However, currently most owners are not willing to cut much price while only small part want to decrease by 2%-3%, plus with developers are actively launching new projects which furthermore drags down second hand property transactions, leading second hand property transaction extremely dull in the past weekend, Liao pointed. When stock market back to stable, users and investors will have more confidence of second hand property market, and the whole second hand property transaction will rise, but it still will stay around floor level in short term by prediction, Liao pointed.
Kornhill Gardens connected unit sold at HKD 19.58 million which is the latest peak.
In fact, Quarry Bay Kornhill Gardens just sold one at latest peak price recently. Source pointed, block G high floor room 9 and room 10 connected unit in usable area of 1,206 sq ft, owner of which asked for HKD 20 million last year, just sold after being cut to HKD 19.58 million recently, with usable area sq ft price at HKD 16,235, and the transaction amount becomes the historical latest peak in Kornhill Gardens. The original owner purchased these two in different term 2010 at total price of HKD 15.8 million, and joined them together, while now the book profit is HKD 3.78 million and the appreciation is 24%.
Unit in Tai Hing Gardens sold at price lower 20% than market level.
Another side, small cost property price keeps falling, and Tuen Mun Tai Hing Gardens II even appeared large price cut transaction. Block 3 low floor room C in usable area 447 sq ft and in two rooms layout, which was launched three days ago at only HKD 3.4 million, which has far low to market level, and it finally sold at HKD 3.35 million, with sq ft price at HKD 7,494, Centaline Ng Yuen Fan expressed. Since similar style current market price is above HKD 4 million, so this transaction price is 20% lower than market level. The original owner bought this unit at HKD 1.14 million in 1997 and sold it cheap looking bad the market trend.
New project attracts people by high percentage mortgage plan.
In the past weekend, Midland ten large housing projects transaction rises back after falling in two weeks, which is about 10 transactions, up 42.9% than 7 in former weekend. In August, external economy market is unrest, stock investment is affected, and more property market participants wait and see leading see-saw appear, Midland Residential Department Chief Executive Officer Po Siuming expressed. However, many small cost new projects get into the market, which not only provide market level price but also supply high percentage mortgage plan, leading new projects compete fiercely, thus second hand property transaction will still be suppressed.
Recent months stock market is unrest, plus with US rising interest will be soon, so the confidence of users and investors more or less is affected, Hong Kong Property Services Senior Executive Director Ng Chong Yip expressed. The project launching steps of each developer is not change, thus it is predicted nearly one thousand units will successively be launched in short term, and first hand property still will be the lead in future while second hand proeprty market will still be dull. Ten large housing projects of this company registered about 2 transactions in the past weekend, down 50% by week.
