Weak housing market | Rising Interest Rates Hit Rail Prices, Mei Foo New Village Returns to Central Plains in 2017


Weak housing market | Rising Interest Rates Hit Rail Prices, Mei Foo New Village Returns to Central Plains in 2017

The haze of interest rate hikes has hit Hong Kong’s second-hand housing market. Even residential complexes along the railway lines, which have always been resilient, have seen transaction volume and property prices decline with the market more ample. According to the monitoring of 56 residential complexes along the main railway lines by Centaline Property, in the first three quarters of this year there were only 4,084 registrations of second-hand sales, with a decrease of more than 40% compared to 7,072 of the same period last year Residential complexes fell by more than 20%. Chen Yongjie, vice president of the Asia Pacific region and chairman of the residential department of Centaline Real Estate, said that under the global economy and rising interest rates, downward pressure on the housing market has increased. He also called on the policy published this month to “cut down on spicy food” to save the market.

In the third quarter of this year, only 1,037 second-hand sales registrations were recorded in this batch of railway housing complexes, down by more than 40% from 1,809 in the second quarter. In terms of price per square foot, Chen Yongjie said the price per square foot of 49 housing estates all fell 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 dropped by more than 20 %.

Among them, Park View Terrace’s average transaction price per square foot in September was 21,763 RMB, a difference of 26% from the average price per square foot of 29,468 RMB in December last year. The residential complex was unaware of the transaction in September, the only transaction in August was room D on the middle floor 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

Even luxury property owners face reality: Tianzhu’s average price per square meter in Ho Man Tin dropped below 30,000 yuan and hit a low of 25,849 yuan in September, a 23% drop from the average price. per square meter of 33,670 yuan in December last year. Of the 3 second-hand transactions Tianzhu recorded last month, 2 were confiscated. Among them, the high-rise 8-room C four-bedroom unit 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 after holding the merchandise for 4 years, the largest case of railway invasion on last month.

The New Territories Yuen Long Long City Plaza Railway Project, which has been in operation for just 3 years, dropped below 17,000 yuan per square meter in September, reaching a low of 16,415 yuan, a 22% drop from December’s 21,261 yuan. last year. In the third quarter of this year, there were 6 second-hand transactions in Langchenghui, 4 of which were “lost in the flesh”, and the book value of 3 of them increased to over one million yuan. Among them, the owners of 3 large high-rise C-room units sold the goods for 10.3 million yuan, which is 2.61 million yuan less than the purchase price of about 12.91 million yuan in the 2019.

The lowest average price per square foot rail project in Hong Kong is Kingswood Villas in Tin Shui Wai, with an average price per square foot of HK $ 10,225 in September, down more than 10% from HK $ 11,403 at end of last year; followed by Mei Foo New Village, an established residential complex in Lai Chi Kok, with 25 cases recorded in September.The average price per square foot was only 11,748 yuan, the first time since September 2017 and the first time in five years that it has dropped. below the 12,000 yuan mark, and fell 20% from an all-time high of 14,764 yuan on July 19.

Shatin City One Three Houses lost 6 million

Second-hand erosion has widened the tide to the railway slab, making it a treasure hunt for buyers. According to market statistics, around 100 loss-making transactions were recorded in the second-hand market in September, with railways accounting for around 20%. In terms of a single residential complex, City One Shatin has the largest loss: of the approximately 40 transactions in September, the loss represented 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 family has finally lost 6 million yuan and a low-rise B-room, with a usable area of ​​451 square feet, has just been sold to 5.65 million yuan, or 12,528 yuan per square foot.

After local banks raised interest rates, property prices continued to fall. Starting in October, the rail sector continued to suffer losses and transactions appeared. Among them, Unit A, skyscraper, Block 5B, Guixi, Nanchang Station, has a usable area of ​​357 square feet and a one-room partition and has just been sold for 8.9 million yuan, or 24,930 yuan. per square foot. The original owner bought it for around 10.18 million yuan in one hand in 2018, and the book lost around 1.28 million yuan or 13% after holding the merchandise for 4 years.

As for the 7 railway projects whose property prices may rise against the market trend this year, these 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 from Heng On Station and Kai Tak No. 1 at 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
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