Buyers paying the price of property gloom

Business | Jasmine Poon 13 Jun 2019

Trade war uncertainties and extradition bill rallies cast gloom over the property market with both commercial and residential buyers forfeiting investments.

Centaline Surveyors director James Cheung King-tat said the Goldin Financial (0530) incident will not significantly impact the residential property market because residential demand is much larger than that of commercial property.

On Tuesday, Goldin Financial rescinded the HK$11.12 billion bid for commercial plot 4C Site 4 at Kai Tak and forfeited a deposit of HK$25 million, which Cheung said is a meager amount for the company.

Bidding for the neighboring residential plot at 4C Site 1 ends tomorrow. The site allows for panoramic sea views and has a high potential to be luxury apartments priced at HK$14.28 billion or $20,000 per square foot, the highest in the Kai Tak development area, said Cheung.

The other residential plot at 4C Site 2 was previously awarded for HK$12.59 billion, or HK$19,636 per sq ft, to a consortium of China Overseas Land & Investment (0688), Chime Corporation, Empire Development, Henderson Land (0012), New World Development (0017) and Wheelock Properties.

At LP6 Lohas Park in Tseung Kwan O, a buyer forfeited the 1,086 sq ft unit at a cost of the HK$851,900 deposit, or 5 percent of the apartment's HK$17.04 million price tag.

Meanwhile, Flat 7C at Harbour Place, Hung Hom, with an area of 590 sq ft, changed hands for HK$13 million, or HK$22,033 per sq ft, a record high for the estate.

The new buyer saw rising rents as motivation for moving into a self-owned flat, while the seller acquired the property in 2015 for 9.85 million, making a profit of 32 percent or HK$3.15 million.

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