HK property prices still falling

Posted by Ed 3 mths ago

Developers and agents, desperate for transactions, have cut many of the latest deals at deep discounts.

The first batch of Wheelock’s brand new Lohas Park apartments were sold at 8 per cent lower than the average asking per sq ft price of resale units in the vicinity. CK Asset’s Blue Coast flats were 27 per cent cheaper than the average per sq ft price of new homes in nearby development La Montagne, sold just eight months earlier.
The downward trend looks set to continue, with the US Federal Reserve reluctant to lower interest rates for now and Hong Kong developers due to release more units for sale in the coming months.
Property consultancy JLL Hong Kong has estimated that more than 20,000 new flats remain unsold in the market. Having more new flats available – and at big discounts – will push down prices of resale units, which are now also in greater supply as home owners are no longer taxed for selling early.
Average prices of resale homes have already dropped by nearly a quarter since a peak in August 2021. In February, they reached their lowest level since September 2016. S&P Global Ratings has said it expects prices to fall a further 5 per cent to 10 per cent in 2024.
Public flats have been affected, too, with more than 130 cases of people pulling out of deals in March as cheaper private homes or bigger units fell within their means.

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Ed 17 days ago
Some HK developers are using cash rebates of up to 50% of the value of properties 

Social media has been abuzz with discussions on how developers are offering cash rebates - a form of under-the-table discounting through private negotiation - to attract buyers. These incentives, in some cases, can reach as much as 50 per cent of the value of a new property.
The Sales of First-hand Residential Properties Authority (SRPA) said it had noticed some developers were offering very high commissions to property agents to boost the sales of new homes, while agents were passing on such rebates to their clients. 

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Ed 14 days ago
Hong Kong property sales plunge again as high interest rates, economic malaise dent demand
There is likely to be little relief for the sagging market in the coming months as interest rates are tipped to remain high, says Ricacorp Properties.
Hong Kong’s property sales sank again in June, with the number of private residential units changing hands down by more than a third from the previous month, according to data from one of the city’s largest real estate agencies.

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Ed 12 days ago
‘Race to the bottom’: Hong Kong home prices slump to multi-year lows, with change far off
Recent launches have sold poorly despite decade-low prices, while prices of lived-in flats hit a nearly eight-year low, according to JLL  
“Hong Kong home prices have been on a race to the bottom in the last four to eight weeks,” said Cathie Chung, senior director of research at JLL in Hong Kong.
“Clearly, owner-occupiers are experiencing dwindling confidence in the market,” JLL said in the report. “Factors such as job security and wage growth, which were once stable and reliable, have now become significant concerns.”

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Ed 8 days ago
HK buyers spurn 12% discount at Kai Tak’s Miami Quay, spelling woe for home market
Hong Kong’s property buyers spurned a 12 per cent discount on offer at a waterfront housing project in one of the city’s choicest locations, signalling more woes ahead for the real estate slump.
Agents sold a single flat at the first phase of the Miami Quay project in Kai Tak, out of the 50 units left over from its September 2022 launch. The flats were priced between HK$5.8 million (US$742,215) and HK$18.9 million, after an average discount of 12 per cent.

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Ed 4 days ago
The family of Ho Shung-pun, a low-key clan of real estate developers in Hong Kong, sold four mansions on The Peak for a 35-per cent discount to market prices to repay debt, sources said, as the city’s property woes have now extended to even the wealthiest elites of the population.  
The transaction price works out to about HK$65,000 per square foot, about 50 per cent less than the valuation at the height of Hong Kong’s property market in 2017, Lee said.
The Ho family’s sale puts downward pressure on other luxury homes in the city, Savills Lee said.

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Ed 3 days ago

Half of the 22 investment properties transacted in the second quarter were foreclosure sales or those that sold at a loss, according to data by real estate services firm Colliers.  

That compares with a quarter in the previous quarter and 26% for all of 2023. The company counts only deals valued at more than US$12.80 million.

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Ed 1 day ago
Racing to the Bottom...
Prices at Pavilia Forest I are the lowest among the new projects launched in Kai Tak, according to Sammy Po Siu-ming, chief executive of Midland Realty’s residential division for Hong Kong and Macau, who predicted a sell-out on the back of strong interest in the aggressively priced flats on offer.
The first 60 flats of the project were being offered for as low as HK$16,008 (US$2,050) per square foot, with discounts of up to 18 per cent compared to other new developments in the same area, according to Midland Realty. 

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Ed 10 hrs ago
China new home prices fall at fastest pace in 9 years, more support needed
BEIJING (Reuters) -China's new home prices in June fell at the fastest clip in nine years while property sales and investment slumped, increasing pressure on policymakers for more stimulus to prop up the battered sector as it struggles to find a bottom.
New home prices slid 4.5% from a year earlier, hitting the lowest since June 2015, deeper than a 3.9% slide in May, according to Reuters calculations based on National Bureau of Statistics (NBS) data.

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