Negative equity warning as Singapore eases curbs

Unlike its regional competitor Singapore, Hong Kong has resisted relaxing property cooling measures and real estate lawmaker Abraham Shek Lai-him warned that this could lead to more negative equity cases.

Shek said some companies wanted to sell their properties to survive the downturn but they failed to do so due to such cooling measures.

His comments came as Singapore yesterday revealed it had extended the project completion period for eligible residential, commercial and industrial developments by six months with immediate effect.

Married couples will also have one year instead of six months to sell their first residential property to be eligible for remission of the additional buyer's stamp duty for their second property.

Meanwhile, in the primary market in Hong Kong, Wing Tai Properties (0369) released 108 flats in the first price list of Oma by the Sea in Tuen Mun, at an average price of HK$12,548 per square feet after discounts, 26 percent lower than that of the first price list of China Evergrande's (3333) Emerald Bay Phase 2 in the same district.

The cheapest 333-sq-ft flat is offered at HK$3.88 million, or HK$11,655 per sq ft, after discounts.

In Tin Shui Wai, Sun Hung Kai Properties (0016) uploaded the sales brochure of Wetland Seasons Park Phase 2, with the smallest flat measuring 282 sq ft.

The number of private flats completed in March plunged 26 percent month-on-month to 1,413, according to the Rating and Valuation Department.

Five new applications of pre-sale consent for residential developments were processed last month, involving a total of 3,676 residential units, up by 175 percent month-on-month, data from the Lands Department showed.

Meanwhile, the secondary market recorded more loss-making deals.

A vendor suffered a paper loss of HK$2.78 million after selling a 1,210-sq-ft flat at Dunbar Place in Ho Man Tin for HK$28.6 million, or HK$23,636 per sq ft.