La Splendure popular with inland buyers, target promoted to 600 apartments
By Yan Lunle (Hongkong Wenwei po) Worsening xternal economy has affected the residential market. With the administration report to be published on 12 October, there’s a continued wait-and-see mood in transaction. There were few transactions during the national holiday. Statistics from the agency show that only 9 to 10 apartments of ten estates were delivered and transaction is at a low ebb in consecutive two weeks, with none apartment in 6 out of ten estates among Midland Realty sold. 70 first-hand properties was sold in two days, mostly from La Splendeur, Tseung Kwan O of Cheng Kung Group and inland buyers constitute 20%. Market opening for Marinella will be on October 9, and the market has it that a record of 20 is reserved within a day.
Liu Jiahui, chief analyst of Midland Realty analyzed reasons of this phenomenon. Hong Kong stocks dropped below 18,000 point last Friday. Huge new estates start selling absorbing market purchasing power. Administration report is to be published this month and residence market policies like housing rehabilitation is focus of the market. Recently both buyers and purchasers keep watch and see. Despite the national holiday, there was no increase in property inspection and transactions lingered on low in the last two days. 6 of the 10 blue-chip estates recorded zero transaction; of the other estates, 9 was delivered, 2 increased by week.
Only 9-10 units of ten huge estates changed hands on weekends
Chen Yongjie, Asia-Pacific area managing director of housing department, Centaline Property Agency Limited said that the ten huge estates recorded 10 transactions, a level off seen by week. Rampant negative news on residential market and global financial market trapped in continued turbulence slacked consumer confidence. The administration report is to be published and many buyers are cautious about the market. It is probable that trade volume will rise only after the report is issued.
According to statistics of Midland Realty branch, sales in Kowloon District were largely affected by the new estates. 4 target estates, including Laguna City in Lam Tin, whampoa garden in Hung Hom, Metro City in Tseung Kwan O and Mei Foo Sun Cheun in Lai Chi Kok only had 1 transaction in total. 3 target estates in Hong Kong island, including Taikoo Shing in Quarry Bay, Kornhill and South Horizons in Ap Lei Chau recorded 2 transactions, 1 more compared to last weekend. In New Territories District, Discovery Park, City One in Shatin and Kingswood Villas recorded 6 transactions in total.
About 68 units of La Splendeur sold in two days
First-hand properties had a record of 70 in the last two days, almost all of which went to La Splendeur in Tseung Kwan O of Cheng Kung Group. As for other new estates, 1 unit was sold respectively in The Masterpiece, Pictorial Garden of Sha Tin and Billionnaire Royale in Kowloon city. Zhao Guoxiong, executive director of Cheng Kung Group noted that in the last 2 days, La Splendeur had a large record of inland buyers, taking up 20% in transaction. Among them at least 2 groups purchased 2 suits of 4-room apartments in a row with 17 million HKD. A reasonable explanation is that many inlanders invest on HK property to avoid risks under purchase restriction order.
Huang Sicong, investment director of Cheng Kung Group notes that till now there have been more than 500 transactions with average feet price over 6,000 HKD, having surpassed the original goal of 400 units. The goal was adjusted to 600, which will soon be reached, profiting 3.8 billion to 3.9 billion HKD. New units facing different directions will be issued this week with a price increase of 2% to 5%. Sales price for feature apartments of La Splendeur will be increased depending on new estate sales in the same district.
Nearly 40 units of Marinella reserved
Besides, Marinella, developed by K. WAH Realty Co., Ltd，Sino Land Co., Ltd.and Nan Fung Group is said to have started reservation secretly last Thursday. It is opened on Saturday unexpectedly for inspection of building standard units. According to market information, 10 units were recorded on Saturday and 20 on Sunday. Plus the previous reservation, the total is near 40 units, mainly covering those of the 6th and 8th building with 18,000 to 23,000 HKD per square feet. But the developer can issue the first price list today at the fastest, and the earliest date of sales is calculated to be on Thursday or Friday.
