According to the data which until May this year, Hong Kong had 196 of Home Ownership projects in total. Among, Sha Tin district supplied 25 of Home Ownership projects becoming the most important district which had largest supply. While Hong Kong Island East district had 24 Home Ownership projects which ranked second. Wong Tai Sin District and Kwun Tong District separately had 22 and 20 Home Ownership projects. What worth to be pay attention to is, the differences of the discount rate among the Home Ownership projects were extremely large. The highest discount rate for unit in Charming Garden in Tai Kok Tsui was up to 51%. So the price was much the same with price for private house after paying land premium. Lung Mun Oasis in Tuen Mun also had discount rate between 29% and 52% after paying premium. Industry insider suggested, buyer of “white form Home Ownership unit” should clearly calculate the actual sq ft price which after paying premium in advance to compare which one would be better for value maintaining, private house or Home Ownership unit.
The sq ft price after paying premium was up to HKD 14,000 which was nearly same to price of private house.
Recently, the housing policy of white form applicant purchasing green form Home Ownership unit in free premium stimulated the rising of green form Home Ownership unit price. Many prices had exceed the price of private house. The green form price for unit of many hot Home Ownership projects in Hong Kong was higher than private house’s price in same district after paying premium. Among, the actual sq ft price of unit of Charming Garden in Tai Kok Tsui was the highest which was HKD 14,247 after paying premium. Some property agent pointed, since Charming Garden was put on sale during peak period of property market and the highest discount rate at that time was up to 51%, so the price of unit after paying premium in this project was nearly the same with house price in Park Avenue which is private house project in same district.
東熹東旭貴過鯉景灣
其次為港島東區筲箕灣東熹苑及東旭苑，綠表呎價分別為6,350元及7,311元，補地價後呎價高約13,511至13,539元，比同區鯉景灣的12,196元還要高。
Unit of Tung Hei Court and Tung Yuk Court is more expensive than unit in Lei King Wan.
Secondly was green form sq ft prices in Tung Hei Court and Tung Yuk Court in Shau Kei Wan of Hong Kong Island east which were separately HKD 6,350 and HKD 7,311. The sq ft prices were separately high up to about HKD 13,511 and HKD 13,539 after paying premium. They were higher than house price in Lei King Wan of same district which was HKD 12,196.
In addition, many buyers have been thought the price for house in New Territories was low, but it is not true. Take Lung Mun Oasis in Tuen Mun for example, the green form sq ft price in this project was about HKD 4,460 with premium discount rate between 29% and 52%. If calculated base on the highest discount rate of 52%, the average sq ft price was up to HKD 9,292 when converting to free market price. It was nearly 60% higher than HKD 5,500 which was price in Sun Tuen Mun Centre, a private house project in same district.
The Managing Director of Savills, Chen Chao-guo pointed, converted price of green form Home Ownership unit after paying premium higher than private house price had happened before. Since these houses mostly were small cost unit at price between HKD 2 million and HKD 3 million, so buyers of these kind of units did not affected by government’s measures such as BSD (Buyer Stamp Duty) and DSD( Double Stamp Duty) and they do not mind buying the house at high price. Chen Chao-guo reminded green form Home Ownership buyer that, current price for green form Home Ownership unit just seems cheap. Buyer should consider and judge well before purchasing.
High property price set with high discount rate.
In fact, since the pricing of Home Ownership unit needs to referring to applicants’ purchasing power, there would be Home Ownership unit at high discount rate when property price is in high level or citizens’income shrinking. Source told, Housing Authority had consider citizens’ income when they set the discount rate for Home Ownership at that time. Applicant’s income would be evaluated before pricing each phase of Home Ownership project to make sure the pricing meet the purchasing power of at least half of the applicants. Government can increase the discount rate to accommodate to buyers’ income when property price in high level.
