The haze of interest rate hikes has hit Hong Kong’s second-hand property market. The housing estates along the railway lines, which have always been resilient, also saw their transaction volume and property prices go down with the broader market. According to Centaline Property’s tracking of 56 housing estates along major railway lines, only 4,084 second-hand sales and purchase registrations were recorded in the first three quarters of this year, a decrease of more than 40% compared with 7,072 in the same period last year. Housing estates fell by more than 20%. Chen Yongjie, vice chairman of the Asia Pacific region and president of the residential department of Centaline Real Estate, said that under the global economy and interest rate hikes, the downward pressure on the property market has increased. He even called on the policy address released this month to “reduce spicy food” to save the market.
In the third quarter of this year, only 1,037 second-hand sales and purchase registrations were recorded in this batch of railway housing estates, a drop of more than 40% compared with 1,809 in the second quarter. In terms of price per square foot, Chen Yongjie said that the price per square foot of 49 housing estates has all recorded a drop this year, ranging from 1% to 26%. Among them, Park View Terrace at Tin Hau Station, Tianzhu at Ho Man Tin Station, Long City Place at Long Ping Station, and Xindu Plaza at Tai Po Market Station, the price per square foot fell by more than 20%.
Among them, the average transaction price per square foot of Park View Terrace in September was as low as RMB 21,763, which was a difference of 26% compared with the average price per square foot of RMB 29,468 in December last year. The housing estate did not hear regarding the transaction in September. The only transaction in August was the middle-floor D room in Block 2, with a usable area of 919 square feet, which changed hands at 20 million yuan, or 21,763 yuan per square foot.
He Wentian Tianzhu lost 8.28 million in 4 years
Luxury property owners also have to face the reality. The average price per square foot of Tianzhu in Ho Man Tin fell below 30,000 yuan, and reached a low of 25,849 yuan in September, a drop of 23% compared with the average price per square foot of 33,670 yuan in December last year. Among the 3 second-hand transactions recorded by Tianzhu last month, 2 were forfeitures. Among them, the four-bedroom unit of 8 high-rise C rooms with a usable area of 1,410 square feet was sold for 35 million yuan, or 24,823 yuan per square foot. The original owner bought it for 43.28 million yuan in one hand in 2018, and the book value depreciated by 8.28 million yuan following holding the goods for 4 years, which was the largest railway encroachment case last month.
The New Territories railway project Yuen Long Long City Plaza, which has only been in operation for 3 years, fell below 17,000 yuan per square foot in September, reaching a low of 16,415 yuan, a 22% drop from 21,261 yuan in December last year. In the third quarter of this year, there were 6 second-hand transactions in Langchenghui, 4 of which were “lost into the meat”, and the book value of 3 of them increased to more than one million yuan. Among them, the owners of 3 high-rise C-room large units sold the goods for 10.3 million yuan, which was 2.61 million yuan lower than the purchase price of regarding 12.91 million yuan in 2019.
The railway project with the lowest average square foot price in Hong Kong is Kingswood Villas in Tin Shui Wai, with an average square foot price of HK$10,225 in September, down more than 10% from HK$11,403 at the end of last year; followed by Mei Foo New Village, an established housing estate in Lai Chi Kok, with 25 cases recorded in September The average price per square foot was only 11,748 yuan, which was the first time since September 2017 and the first time in five years that it fell below the 12,000 yuan mark, and fell 20% from the historical high of 14,764 yuan in July 19.
Shatin City One Three Houses Lost 6 Million
The second-hand erosion has spread the tide to the railway plate, making it a treasure hunt for buyers. According to market statistics, regarding 100 loss-making transactions were recorded in the second-hand market in September, with railways accounting for regarding 20%. In terms of a single housing estate, City One Shatin has the largest loss. Of the 40 or so transactions in September, the loss accounted for at least 6. That is, on average, there is one loss for every 6 transactions. Since October, Shatin City One has temporarily recorded 6 transactions. The three-bedroom household has finally lost 6 million yuan, and a low-rise B-room, with a usable area of 451 square feet, has just been sold for 5.65 million yuan, or 12,528 yuan per square foot.
After local banks raised interest rates, property prices continued to fall. Entering October, the railway business continued to suffer losses and transactions appeared. Among them, Unit A, high-rise building, Block 5B, Guixi, Nanchang Station, has a usable area of 357 square feet and a one-room partition. It has just been sold for 8.9 million yuan, or 24,930 yuan per square foot. The original owner bought it for regarding 10.18 million yuan in one hand in 2018, and the book lost regarding 1.28 million yuan or 13% following holding the goods for 4 years.
As for the 7 railway projects whose property prices can rise once morest the market trend this year, they are Lei King Wan of Sai Wan Ho Station, Chong Shan of Wong Tai Sin Station, Xiang Lung Wan of To Kwa Wan Station, Tian Yu Hai of Heng On Station, and Kai Tak No. 1 of Kai Tak Station , The Metropolis at Hung Hom Station and The Dragon Hill at Fo Tan Station, with increases ranging from 0.6% to 33%.
Source: Centaline Property
Text by FORTUNE INSIGHT
Fortune Insight and “The Wall Street Journal” launched a new subscription plan “FI Prime Plus”, only one-third of the original price of the WSJ official website, you can enjoy the entire network content of the “Wall Street Journal” and most of Fortune Insight’s paid content at the same time.
Click here to subscribe:https://prime.fortuneinsight.com/web/wsj
Subscribe FORTUNE INSIGHT Telegram:
http://bit.ly/2M63TRO
Subscribe FORTUNE INSIGHT YouTube channel:
http://bit.ly/2FgJTen
