First residential site sale set at far north

Business | Staff reporter 23 Apr 2021

Bids for the first residential site in Kwu Tung North to be sold by government tender close today, with the plot valued at between HK$4.8 billion and HK$6 billion.

The site area is around 200,000 square feet.

In the primary market, Sun Hung Kai Properties (0016) received 1,300 checks for 128 units of Regency Bay's phase two in Tuen Mun to be sold according to the price list tomorrow, making them 9.2 times oversubscribed. Sun Hung Kai will also offer one unit for sale by tender tomorrow.

Henderson Land Development (0012) expects to release at least 96 units in the first price list of The Henley I in Kai Tak in early May. The project offers 479 units of between 186 and 1,350 square feet.

In the secondary market, a 1,114-sq-ft flat at Tai Koo Shing in Quarry Bay changed hands for HK$24.50 million, or HK$21,993 per sq ft. The seller, who bought the unit for HK$1.5 million in 1989, will make a capital gain of HK$23 million.

And the one-month Hong Kong Interbank Offered Rate, linked to the mortgage rate, fell to 0.09161 percent.

If the Hibor-based mortgage interest rate is Hibor plus 1.3 percent it can be as low as 1.39161 percent. With a HK$4-million mortgage and an annual interest rate of 1.39161 percent and a repayment tenor of 25 years, for example, a customer needs only to pay HK$15,794 each month.

In comparison, the one-month Hibor was 0.38232 percent on July 13, and a homebuyer would have needed to pay HK$16,342 monthly for a 25-year loan based on an interest of 1.68232 percent. So the new rate means a homebuyer benefits to the tune of HK$548 monthly.

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