Massive Loss on Railway-Adjacent Home: Lai Chi Kok Flat Sells for HK$6.5M, 8% Below Valuation!

In recent years, property prices have continued to decline, and even railway-adjacent developments have not been spared. A two-bedroom unit in Lai Chi Kok’s The Pacifica was recently sold for HK$6.508 million, with a price per square foot of HK$14,757—up to 7.6% below the bank’s valuation. The original owner, who purchased the unit eight years ago, sold it at a loss of HK$562,000, or approximately 8%.

According to Hong Kong Property, the unit in question is located in Block 3, Mid-Floor, Unit B of The Pacifica. It has a usable area of 441 square feet, features two bedrooms, and offers a northwest-facing view of the internal garden. The original owner had initially listed the property for HK$6.8 million, but after approximately four months on the market, a buyer expressed interest.

After negotiations, the seller agreed to reduce the price by HK$292,000, or 4.3%, closing the deal at HK$6.508 million, with a price per square foot of HK$14,757. The buyer, coming from outside the district, appreciated the unit’s quiet environment and well-maintained condition. After a single viewing, they decided to finalise the purchase.

According to bank property valuation platforms, Hang Seng Bank valued the unit at HK$6.75 million, while Bank of China estimated it at HK$7.04 million. This means the final transaction price was 3.6% to 7.6% lower than the bank valuations.

The original owner purchased the unit in May 2017 for HK$7.07 million and held the property for nearly eight years. Selling it now has resulted in a HK$562,000 loss, equivalent to approximately 8%. Agents added that the current average price per square foot in The Pacifica is HK$14,240, reflecting a roughly 4% drop compared to the previous month, indicating that prices remain low in the area.

This transaction highlights the ongoing challenges in Hong Kong’s property market, where even railway-adjacent properties are seeing losses.

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