Long Beach prices rise for New Year

Business | Esther Yu 28 Dec 2016

Hang Lung Properties (0101) has raised prices of flats for sale at Long Beach on New Year's Eve.

The 48 units at Kowloon West have seen prices rise by 3 to 4 percent in a week after the previous batch was sold out on Christmas Eve.

The developer has changed the discount arrangement by putting the ceiling of discounts at 19 to 20 percent, down from the original 23 percent. The move translates into an increase of prices by 3 to 4 percent.

The new units are sized between 560 and 863 square feet and all have harbor views. Average per sq ft price stood at HK$17,714.

The four rounds of sales have accumulated a total of 254 units and HK$2.7 billion.

The home market did well on the long Christmas weekend. At least 20 deals were recorded in the primary market, apart from the Long Beach.

Chinachem's luxury project Eden Gate saw two units sold to a buyer on Christmas Day for more than HK$102 million, or HK$34,300 per sq ft.

The two units, sized 1,512 and 1,464 square feet, were sold with two parking spaces at HK$2.5 million each. The first-time buyer was said to be exempted from the 15 percent stamp duty, or more than $15 million from the transaction price.

Sun Hung Kai Properties (0016) also sold four units of Park Yoho Venezia by yesterday and cashed in a total of HK$26.52 million.

The secondary home market also performed well. Centaline recorded 11 deals over the weekend, while Midland and Ricacorp counted 14 for the 10 major housing estates.

Meanwhile, as the Hong Kong inter- bank offered rate has risen more in recent months, OCBC Wing Hang has increased its mortgage rate.

The lender has added 20 basis points, from 1.6 to 1.8 percent, to the first year's cost of its fixed-rate mortgage offer.

Those who borrow more than HK$3 million will pay HIBOR plus 1.36 for the second year of mortgage, according to its fixed-rate plan.

Despite the rise, the first-year repayment rate of 1.8 percent is still at a discount to the rate charged to most homeowners, which usually stands at HIBOR plus 1.35, or around 2.05 percent.

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