Staff reporter
With stamp duties in Hong Kong having been reduced and a pause in interest rate hikes by the United States, potential buyers are entering the market at an accelerated pace, resulting in some estates seeing deals being made, albeit with slight discounts.
A 603-square-foot, two-bedroom unit on a lower floor in Tai Koo Shing, Quarry Bay, was recently put on the market with an asking price of approximately HK$8.8 million.
It was sold off for HK$8.5 million, after some to-and-fro negotiations, or around HK$14,096 per square foot, according to Midland Realty, which was in line with current market values.
At Liberte, Cheung Sha Wan, a high-floor two-bedroom apartment with an area of around 517 sq ft was listed for sale at HK$8.8 million in September.
Two months later, a first-time homebuyer from outside the area purchased it for HK$8 million, or HK$15,474 per sq ft, which was again in line with current market values.
Centaline Property said that in MOS Town, Ma On Shan, a unit with an area of 338 sq ft was initially listed for sale at HK$5.65 million.
A slight reduction of HK$50,000, made after a dearth of interest, attracted the interest of a buyer from outside the area who then snapped it up for HK$5.6 million.
The per-square-foot was approximately HK$16,568, which was in keeping with the current market value.
The chief executive of Ricacorp Properties, Willy Liu Wai-keung, noted that following the government’s easing measures in the property market, there has been a rise in property visits from potential buyers, accompanied by a more assertive stance on the part of some property owners.
Consequently, recent market transactions have seen fewer price reductions.
However, if developers continue to employ a strategy of low initial pricing, it may exert downward pressure on the prices of second-hand properties, leading to some anxious owners reducing prices to seal a deal.
With new projects consistently adopting low pricing and interest rates remaining high, the secondary market continues to face challenges.
Transactions in the past month have been primarily driven by discounts and below-market pricing, leading to a corresponding shift in banks’ valuation attitudes toward a more conservative stance, resulting in a successive decline in property valuations across housing estates.
Last month, Sing Tao Daily observed a continued decrease in valuations at 19 of 20 housing estates, with the month-on-month declines ranging from 0.9 to 10.6 percent.
Only one estate saw valuations remain stable.
The steepest decline was observed in Metro Harbour View, Tai Kok Tsui.
A unit A on the middle floor of tower seven saw its valuation dip below HK$5 million, reaching approximately HK$4.9 million in one latest assessment.
This represents the lowest valuation since last January, representing a plunge from HK$5.48 million in October.
That translates to a plunge of HK$580,000 over a period of just one month, reflecting a decline of about 10.6 percent.
Following that, in City One Shatin, a unit C on the middle level of tower 20 was valued at around HK$4.47 million in November.
Compared to the previous month’s valuation of HK$4.92 million, this represents a further decrease of HK$450,000, or approximately 9.15 percent.
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