Tai Po Kwong Fuk Estate flat put up for auction at 40% below valuation
A severely cluttered three-bedroom housing estate flat in Tai Po featuring six mortgage applications has been put up for private auction with an opening price of HK$3.98 million, reflecting a roughly 40 percent discount from bank valuations.
Scheduled Auction at Kwong Fuk Estate
Loyal Auction is scheduled to offer the 554-square-foot property at Flat 6, Low Floor, Block C of Kwong Fuk Estate on October 14. The opening price equates to a unit rate of HK$7,184 per square foot.
The unit was previously put on the open market in September at an asking price of HK$5.54 million after clearing land premium requirements, but drew no interest from buyers. The lender subsequently seized the property following a default on loan payments.
Auction Price Starts Below Bank Appraisals
According to bank appraisals, including online valuations provided by HSBC, the property holds an estimated market value of HK$5.58 million. The current auction opening price sits approximately HK$1.60 million below that benchmark.
Owner Secured Multiple Loans Since 2010
Public land registry records show the original owner purchased the flat in 2010 for roughly HK$1.80 million. Between 2010 and 2023, the owner secured six separate mortgage applications against the property across various commercial banks and financial institutions, accumulating at least three major loans totaling HK$4.20 million. The largest single borrowing involved a HK$2.50 million loan from Convoy Capital.
Heavy Clutter and Interior Condition
Photographs from the listing show heavy accumulation of personal items and refuse throughout the interior. Storage boxes, electric fans, and a stroller fill one bedroom to the ceiling level. The living and dining areas exhibit worn wallpaper and flooring alongside packed debris. The bathroom contains loose plastic bottles and cups on the floor, a floor fan inside the bathtub, and peeling plaster on the ceiling.
Auction Price Exceeds Original Purchase Cost
Despite the accumulated clutter and encumbrances totaling more than double the original purchase price, the property enters the auction block at a level exceeding the 2010 acquisition cost by HK$2.18 million, or roughly 1.21 times.