Second hand property market appeared cases of price cut in succession. Even Super House of Taikoo Shing supplied price cut (see list). Hong Kong Property pointed out, the property market appeared a situation of “ New house market hot while second hand property market dull”. The price of second hand property will appear trend of price cut by estimated. The decreasing range will possible be 10%. The whole property register quantity this year may decrease to about 90,000 cases which will be the lowest in 10 years. At the same time, mainland customers are almost disappeared these few months. It made the trading of property which above HKD 10 million sharply decreased 60%. It is estimated that the luxury house will “ quantity drop price stable” this year.
The situation of owners in each districts making price cut appeared in succession recently. Four rooms unit which is room A, middle floor, building 3 of Vision City, Tsuen Wan sold at about HKD 12.6 million to a house changing customer in same district. The customer need to pay about HKD 945,000 of DSD in total. Since the original owner look bad of the future market and willing to sold without more profit, the price of the unit was cut by HKD 1 million. It sold at about HKD 12.6 million which lower about 5% than the market price. Two rooms Super House in Taikoo Shing of Hong Kong Island also sold by price cut. The unit is room G, middle floor, Ming Gong Court of which the usable area is 582 sq ft. It quoted at HKD 8.5 million by the original owner. After the negotiation, the unit sold at HKD 7.95 million with price cut of HKD 550,000. The decreasing range was up to 6.5% and the usable area sq ft price was HKD 13,660.
Mainland customers’ ratio decreased to 3.8%.
“Two strict measures” not only affect local buyers’ property buying intention, but also scared away the mainland customers who largely interested in Hong Kong property. According to the data of Hong Kong Property Research Department, mainland customers’ ratio was affected by “ two strict measures” and sharply decreased from more than 10% to 3.8% until the end of last year. The ratio of mainland customer who bought luxury house more than HKD 10 million even sharply decreased to 6.3% from 30%. Mainland customers are almost disappeared from luxury projects of One Beacon Hill, The Waterfront, The Harbour Side, The Arch and etc. It is estimated that the ratio of mainland customer who buy luxury house this year will drop to under 5%. The ratio of mainland customer in the whole market who buy house will decreased to 2%.
Yao Wei-nan, the senior sales director of Hong Kong Property believed, under the haze of government launching measures in succession and the number of mainland customers sharply decreasing, the trading of residential property this month estimated drop to about 4,000 cases which fall about 40% by month at then. While the whole property trading will possible decreased to about 7,000 cases which will possible be the lowest in 13 months. It is estimated 90,000 cases in whole year which will possible be the lowest in 10 years. He predicted, the register quantity of luxury house which above HKD 10 million since this year is 1,007 cases. It dropped more than 50% than data in the fourth season last year. It is estimated that the trading of luxury house this year will fall back to about 5,000 cases from last year’s 7,323 cases. The number may be the lowest in 5 years.
More and more renting changed into buying. The rent in Kowloon will possible rise 5%.
According to the data of Hong Kong Property Research Department and calculating the average sq ft price (base on usable area) of 100 small-medium units in Hong Kong, the average sq ft price rose from HKD 7,829 in June last year before measures launched to HKD 8,539 in October last year. The increasing range was up to 9.1% in 4 months. But the rising range decreased to 6.4% 4 months later after government launched the measures. Liang Wei-ming from Hong Kong Property pointed, according data of their company, medium blue-chip projects in Kowloon such as Mei Foo Sun Chuen and Whampoa Garden only separately had 8 cases and 9 cases of trading in record one month after government launched the new strict measures. It is estimated that the trading in whole month will be only little more than 10 cases. Both these two are the lowest since 1997. As for Amoy Gardens, Telford Garden and so on in East Kowloon, the trading also bad. The trading quantity is estimated will not more than 10 cases and will be the lowest after SARS broke. The second hand property price in Kowloon district may decrease by 5%-10%.
However, Huang Yong-zhong, the sales director of Hong Kong Property believed, the rent in Kowloon district will possible rise about 5%-10% because the situation of more renting change into buying.
The register quantity of second hand property will possible make new lowest record.
On other side, Midland synthesized the data of the company. There was only 33 cases of trading during the whole 35 large projects in Hong Kong in the past one week (18th March to 24th March). It decreased 13% by week and had kept in extremely low level around 30 cases in 4 weeks. It is the lowest in history since 2002. Liu Jia-hui, the lead analyst of the company predicted, the register quantity of the whole second hand residential property market will not exclude less than 2,700 cases. Then it will be the month which has lowest register quantity since there was record. It means it will worse than situation when SARS broke.
