As the first season of this year is coming to an end,the performance of the property market can be describes as the entangled with 'cold and heat'.In the early part of the season,the overall trading volume continued to remain in a low levels,there are no significant improvement.However,facing a number of headwinds on the market,the impact of the United States stop buying bonds and raise the interest rates next year,the new supply keep on launching out the sales and the lands failed the bids continuously,under these situation,the owners and developers may have to accept the reality,willing to sell their properties with a cheaper prices or a loss in order to attract buyers.First-hand properties keep on launching out the sales with a discounted price and the second-hand property owners have put heir properties on sale with a prices with a loss in order to attract the buyers to buy the property.The industry is expected that the property market in the second season have appeared a situation of'transaction volume rose and the amount fell'.Centaline Asia-Pacific president of Residential Department Mr Chan Wing Kit said that it originally expected the residential property prices fell about 10% to 15% in the first half of this year when compared to last year and it is believed that as affected by the rate hike by the Fed news and a variety of external factors,10-15% of the decline on the property prices may be appeared in the early of April ■ Hong Kong Wenhui newspaper reporter Wong Ka Ming
The pace of developers on launching out the sale this year wasn't hurry like the past,although most of property sales keep on using the preferential policies of 'free of taxes' in order to attract the buyers,but there are lack of new properties have put on sale,because most of the properties which put on sale now was some unsold units.Meanwhile,as the land sale keep on failing the bid recently,so the the attitude of the developers reflected conservative on the outlook of the market,coupled with the Fed recently said it would abandon the use of forward-looking 6.5% unemployment rate guidelines and they will stop buying bonds in this fall,so the market is generally expected in 2015 as the fastest in spring,will start raising the interest rates.
Lutopie in Tai Po have recorded a transaction with a loss of HKD $4.8 million
In fact,the hol stock power of second-hand property owners have been attacked recently,according to the second-hand property transactions which recorded recently,of which there are a few owners have earned a double in the transactions.There are some of the second-hand property owners sell their property in order to seek for money and even sell their property with a loss,of which Tai Po district which have recorded the lands failed the bids recently ,it is believed that the transactions with a loss will keep on appearing in the district.Century 21 Lo Ka Lun said that lower floor of doubled-number of Lutopie in Tai Po,with the salable area of 1,553 feet and sold in HKD $1.90 ten million and changed hands,the price per sq.ft is HKD $12,234. Original owners bought the unit in HKD $2.338 ten million in April 2007,hold stocks for seven years,so far eclipse HKD $4.38 ten million,so even if with the fee,it have recorded a total loss of HKD $6.0 million.
In addition,as the Pak Shek Kok land have failed the bids recently,Flat A,Uppper Floor,Tower 1,the Balmoral,with an utility area of 1,629 feet,the original asking price by the owners was HKD $2.0 ten million .Then discounted HKD $1.0 million in a sudden and sold in
HKD $1.9 ten million and changed hands,with a decrease of approximately 5%.In the early of 2011,the original owners bought the unit in about HKD $2.048 ten million,so this transaction with the loss of HKD $1.48 million and changed hands,even if including the unit purchase cost,stamp duty and commission of about HKD $800,000,it is estimated the tangible loss of nearly HKD $2.5 million.
Festival City in Tai Wai have recorded 5 transactions with a loss in this month so far
As for the second-hand property keep on discounting the prices,of which have the district which have more supply of new flats in new towns such as Tai Po and Tai Wai have the most obvious situation.As for Tai Wai,Centaline Lam Yuk Lok said Festival City in Tai Wai of Cheung Kong have recorded about 5 transactions with a loss.Of which a unit which located in Flat C,Upper Floor,Tower 2 of Festival City Phase 2,the original asking prices of the owners was HKD $9.5 million and reduced by about 8% to HKD $8.7 million and sold,with an usable area of 784 feet,the price is HKD $11,097 per sq.feet and even calculated with a fee,still recorded a loss of approximately HKD $548,000.
Midland Realty Lai Chun Pang pointed out that Flat B,South Wing,Lower Flor,Tower 1 of Festival City Phase 2,with an utility area of 1,038 feet,the owners was come from mainland,have launched out the property on sale with a price which lower than the purchased prices of HKD $1.1 ten million in February,but there are still no new buyers to visit it and then finally discounted HKD $1.24 million to HKD $9.76 million and changed hands,it is estimated this transaction with a total loss of over HKD $1.80 million.As for another unit which located in the south wing of Tower 5 sold in about HKD $7.7 million,representing the carrying an earn of HKD $60,000 of the purchased price,but it is expected it still recorded a loss of material expenses.
Centaline pointed out that the it is known that the second-hand residential property transaction registrations have recorded 1,245 cases last month,of which the transactions which recorded a book loss have 23 cases,the ratio of the number of the transactions with a loss was 1.8%; tie in there have recorded 4 cases.The main transactions which have recorded a loss was the unit which bought at the peak level in 1997.There are New Territories agency also revealed that in the past one month,Sha Tin and Tai Po District,have recorded 14 transactions with a loss,which even evaporated the property prices of more than HKD $2.1 ten million.
