Foreclosure sale in Kowloon Tong

Business | Samantha Wong and Reuters 11 Jul 2017

A 4,980-square-foot foreclosed house on Oxford Road in Kowloon Tong was sold for about HK$200 million, or HK$40,000 per sq ft. Back in 2012, the previous owner bought the house for HK$180 million.

There is another foreclosure listing of a 5,140-sq-ft house in the same estate for about HK$260 million. The estate at 1 Oxford Road was developed by China Overseas Land and Investment (0688) and provides 12 houses.

At One La Salle in Kowloon Tong, a 2,216 four-bedroom home was sold for HK$83 million, or about HK$37,400 per sq ft. The owner made a gross profit of about HK$25 million in seven years.

Ricacorp Properties said there are two units listed for sale at One La Salle, with a minimum asking price of HK$80 million.

Meanwhile, Hong Kong mortgage lenders are doing booming business, with interest rates from shadow lenders varying widely.

Typically, it starts at around 5 percent and go up to 20 percent or higher, versus 2-3 percent at regular banks, which also lend for longer terms of 25-30 years.

Another 100 firms had applied for a money lender's license as of the end of May.

Mortgage loans granted by the dozen or so financing units of Sino- Land Company more than doubled in 2016 from the year before to HK$1.02 billion, according to its annual report, in a year when turnover nearly halved and profit dived by nearly 25 percent.

Other top developers, including Cheung Kong Property Holdings, Sun Hung Kai Properties and Henderson Land Development also have financing units.

Loans from one of Sun Hung Kai's financing arms for its latest development in the New Territories started at 80 percent of the property price and went up to 120 percent for people who already had a home and wanted to upgrade, according to its price list.

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