Discounts still dominate secondary market

Business | Stella Zhai 20 Nov 2019

A home buyer forfeited a deposit of HK$450,000 after calling off the purchase of a one-bedroom flat at The Carmel in Tuen Mun priced at HK$4.55 million.

The project, developed by Wing Tai Properties (0369), opened for sale in January and has sold over 90 percent of the flats in the first sales batch.

The secondary market, meanwhile, continued to witness more price cuts.

In Tin Shui Wai, a 547-square-foot flat at Kingswood Villas changed hands for HK$5.15 million, or HK$9,415 per sq ft - around 10 percent lower than the market average.

In Kowloon Bay, a two-bedroom flat at Telford Gardens sold for HK$6.5 million, or HK$13,158 per sq ft, after HK$500,000 was cut from the original asking price.

This marks the cheapest average price among the seven transactions in the same project this month. Still, the price was 81 percent higher than the purchase price of HK$3.59 million paid by the seller back in 2012.

In Tsuen Wan, a 474-sq-ft flat at D Park was sold for HK$6.6 million, or HK$13,924 per sq ft, after HK$800,000 was cut from the original asking price three months ago.

The former owner bought the flat for HK$2.58 million in 2000, and earned 1.6 times that amount from the sale.

The owner of a similar unit also cut the price by over 10 percent to HK$7.42 million last month.

In Ma On Shan, a double-room flat at Double Cove sold for HK$7.68 million, or HK$15,484 per sq ft, 2 percent lower than the initial asking price.

The seller earned just HK$460,000 after buying the flat in 2015. In Vista Paradiso, another major project in the district, a 650-sq-ft unit sold for HK$8.15 million, or HK$12,538 per sq ft, around 10 percent lower than the initial asking price and 6 percent less than the market price.

The seller had bought the unit for HK$5.58 million in 2013.

In Tseung Kwan O, a 805-sq-ft unit at Lohas Park Phase 2A Le Prestige fetched HK$10.38 million, or HK$12,888 per sq ft, after HK$2.12 million, or 17 percent, was cut from the original asking price in June last year.

The district saw a subdued secondary market this month with 90 deals as of yesterday - only 34 percent of the total amount of October.

Tsing Yi Island, however, recorded 30 secondary transactions as of yesterday, compared with 15 deals in the same period last month.

These included a 547-sq-ft home which changed hands for HK$75.5 million, or HK$13,803 per sq ft.

The overall Hong Kong Interbank Offered Rate saw a pullback yesterday. The one-month Hong Kong Interbank Offered Rate, which is linked to the mortgage rate, fell to 2.53464 percent.

The overnight Hibor slid to 1.91607 percent and the one-week Hibor declined to 2.69214 percent, according to the Hong Kong Association of Banks.

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