More price cuts seen in secondary market

Business | Jeannie Tang 2 Jan 2019

More price cuts were recorded in sale and purchase transactions in major housing estates on the first day of the year yesterday. The cuts came amid wide expectations of a secondary market rebound in the second quarter and a view that further price falls are unlikely.

A 580-square-foot flat at Taikoo Shing, a major housing estate on Hong Kong Island, was sold for HK$10.28 million or HK$17,724 per sq ft, significantly lower than the vendor's HK$10.80 million asking price.

The vendor of a 794-sq-ft apartment at Central Park in Olympic Station slashed the asking price by HK$1.5 million and sold the unit for HK$1.85 million or HK$23,300 per sq ft.

A 550-sq-ft three-bedroom flat at Kingswood Villas in Tin Shui Wai changed hands for HK$5.15 million or HK$9,364 per sq ft. The seller originally sought HK$5.2 million.

A 558-sq-ft flat at Mount Haven in Tsing Yi initially sought HK$8 million, but later agreed to unload the property for HK$7.5 million or HK$13,441 per sq ft.

A two-bedroom 391-sq-ft flat at Nan Fung Sun Chuen was sold for HK$6.88 million or HK$17,084 per sq ft, HK$120,000 less than the price fetched for a similar unit last month.

Rating and Valuation Department data showed that home prices fell by 3.5 percent month on month in November. Small and medium-sized flats were affected most, with the average fall in prices in the two sectors at 3.76 percent.

Prices of small flats on Hong Kong Island dropped the most by an average of 6.1 percent.

Thomas Lam, an executive director at real estate consultancy Knight Frank Hong Kong, attributed the fall in prices in the secondary market to the recent interest rate hike and the ongoing trade war between China and the United States.

He said he expects the primary market to perform better in the coming months, but prices of second-hand Home Ownership Scheme flats and small apartments could go down further.

Meanwhile, the Urban Renewal Authority will offer for sale "Starter Homes" at its 'eResidence" pilot project in To Kwa Wan at 62 percent of their assessed market value, starting tomorrow.

The URA will offer 450 flats, from 261 sq ft to 507 sq ft, from HK$11,692 to HK$13,969 per sq ft.

The project will provide a total of 493 flats, including 43 which will be offered at market prices. Up to 82 percent of the flats are studios and one-bedroom units.

URA managing director Wai Chi-sing said the agency has no plan as yet to develop more "Starter Homes" projects, but it will support the government if such need arises.

In other news, Sun Hung Kai Properties (0016) said revenue at its 12 shopping malls on New Year's eve rose by 23 percent compared to the same period last year.

Elsewhere, Cushman & Wakefield said the volume of coworking premises in Hong Kong this year expanded by 4.5 times to 1.6 million sq ft from last year. Of the total, about 770,000 sq ft were located in Grade A office buildings.

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