Taikoo Shing homeowner lops 20pc off flat price

Top News | Samantha Wong 17 Jul 2017

A 690-square-foot flat at Po Shan Mansion in Taikoo Shing has been sold for HK$10.6 million - 20 percent lower than the asking price - according to Midland Realty.

In May, the price for the three- bedroom apartment was listed at HK$13.5 million.

But the owner decided to slash the price to HK$11 million, and later sold off the property for HK$10.6 million or HK$15,340 per sq ft.

The transacted price was 10 percent lower than the online valuation by several major banks. Both HSBC and Standard Chartered put the property's value at HK$11.87 million, while Hang Seng Bank had a valuation of HK$11.7 million.

Another recent transaction in the same building in April involved a 582-sq-ft flat that was sold for HK$9.3 million, or HK$15,979 per sq ft.

Taikoo Shing, in Quarry Bay, is a private residential estate developed by Swire Properties in the 1970s. It comprises more than 60 residential blocks that provide about 12,000 flats.

Prices of flats at Taikoo Shing are widely regarded by many industry watchers as an indicator of the health of Hong Kong's housing market.

Centaline Property Agency said it has so far recorded eight transactions in Taikoo Shing this month.

The most recent deals include a 922-sq-ft flat at Junpier Mansion sold for HK$15.5 million, or HK$16,811 per sq ft.

Last month, the asking price for it was HK$16.7 million.

Citibank said last week that home prices may tumble by up to 20 percent in the second half of the year after rising significantly in the first half.

Catherine Cheung Man-wah, head of Citibank's investment strategy and portfolio advisory, said nearly 24,000 new apartments would become available from the second half. This, together with cooling measures imposed in May, could help suppress prices.

Property consultants JLL sees housing prices rise by 15 percent over the next 30 months. JLL said the annual average housing supply between 2007 to 2016 was 10,800 units, well below 25,100 recorded between 1992 to 2006.

It added that even if supply rises to 21,000 units between 2017 to 2020, primary supply won't be enough to cause a spike in prices.

"Developers are building a greater number of smaller units to cater for the mismatch between what households can afford and the availability of small- sized units in the market," JLL said.

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