Foreign Property News | Posted by Aye Myat Thu
Some property investors are rushing to cash out amid fears of a further fall in Hong Kong home prices, a move that could accelerate the correction in selected housing estates.
Values have already plunged more than 20 per cent from recent highs, according to experts.
Examples of the double-digit price decline could be seen in Kingswood Villas in Tin Shui Wai, Park Island in Ma Wan, Residence Bel-Air in Pok Fu Lam and Caribbean Coast in Tung Chung.
“Home prices in Kingswood Villas have declined more than 20 per cent from the peak in July,” said Bryant Man, a sales manager at Ricacorp’s branch at Kingswood Villas.
Analysts say a toxic combination of rising interest rates, a correction in local stocks, and concerns surrounding the US-China trade war have taken a toll. In addition, lacklustre sales results at recent project launches have further dampened enthusiasm.
Last week, only two sales were recorded among 73 units offered at T-Plus in Tuen Mun. Prices for the micro flats, some measuring 131 square feet, were starting at HK$2.85 million (US$364,600).
Many homeowners seeking to sell their properties stand to make a profit as they have held the units for three years, Man said. Under the existing rules, owners are required to pay a tariff of as much as 20 per cent if they resell flats within 36 months of purchase.
“They would like to lock-in the gain as soon as possible,” said Man. “But monthly transactions have dropped by half to 20 deals from 40 several months ago.”
The biggest drop went to Residence Bel-Air in Pok Fu Lam, which saw prices shoot up to HK$44,496 per sq ft in late April before slumping 34.4 per cent to HK$29,200 per sq ft early this month, according to data from Centaline.
Ref: Property Report
