Posted by
cym
15 yrs ago
Is it a bad time to buy property
Looking in hk island central and sheung wan
Prices are so high but will they ever come down??
How much should one wait or not wait??
As I have to move out in two months from my rental , dont know what to do. Want to invest in my own as no point paying rent any more to land lord
I am looking for net area 550 nothing smaller
any help or suggestions please??
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Hi Cym. if you can afford to buy, you can cope with most market shocks and you feel secure in your job, then it's always best to buy. Of course price is important but if inflation kicks in prices could move up faster and prices are still over 20% below their peak in 1997. Unfortunately, Central and Sheung are very pricey - especially as the new MTR will come in soon in Sai Ying Pun. realistically I suppose, you need to pay at least 6,000 psf probably 7,500 in a newish building. A net area of 550 sf would probably push that figure up to 8,000-10,000 though. As for old buildings, I don't know, but I would suspect most owners will be holding on for redevelopment and . Also ask yourself if you were a property owner now, would you sell cheap and, supposing you made a profit, where would you put the money? If your budget is 4,000 psf, then you can consider new developments in Tseung Kwan O and Yuen Long.
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cym
15 yrs ago
I am being asked by my landlord to pay 3.6 Million for a 570 sq feet apt. Net 440. Its near the macau ferry pier. I can afford to pay 25 percent down , but the mortages is so high monthly. I am tired of paying rent but want to continue to stay in sheung wan area. Do u think prices will go up furthur or just stay as is ?? Is this the peak already??
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Cym. Nobody knows the answer to this so why are you asking. I think they will go up and I having been buying when I could afford it for 10 years or so. However, it's your decision. If you pay rent, you will lose. If you buy, you will lose if you have to struggle but will win eventually if you hang on in there. People said I was mad to pay HK$1.2m for a flat in Yeun Long in 2003 but is now up 90%. HK$3,600,000/570 is 6,315 per sf which sounds about right (I'm using the gross figure as no one uses the net figure for comparisons). The actual amount of space you have depends on lay-out which is why some developments sell better than others. Can you tell us the building so we can compare the price with other buildings in the area on Centadata.com? How old is the property?
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Obviously no one has a crystal ball and can predict the property market... but I think it's fairly safe to say that interest rates will be coming up. We usually follow the US Fed decision and once they are well and truly out of their recession, they will be raising interest rates - which means HK will follow.
I remember one analyst predicting interest rates will rise by... er... gee I'm pretty sure he said the end of 2011...
As for the property market: well in the current budget, the government announced some measures but these won't affect the market in the shortterm. Of course, there are measures to dampen the prices in the luxury sector - flats costing over $20million... but the measures that would affect flats that might be in your price range would be the one on land supply. The government plans to hold more land auctions, every six months - which means there will be a greater supply of new flats in the market.
But how long does it take to build a residential development? YEARS!
I agree, prices are astronomical but I think there's probably still room for them to rise a bit more. But who knows - if swine flu strikes us down then real estate could tumble.
If you can easily afford the flat and easily afford the current mortgage/interest rates, then I think it's a good idea to invest in property - especially if you're in HK for the longterm. But if the mortgage is already too high for you, I think you need to be careful.
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Still Pizza I think you need to check the current villa prices. 3000sf in a gated villa is 8-10m territory, even in Yuen Long
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I can't find any 3000sqft places in Yuen Long for under $4m. Can someone direct me to an agency with these types of properties? I would be very interested to look at one.
Thanks
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cym
15 yrs ago
Location is very imp in the long run . Also to sell the prices in hk island will always be prime. The point is to wait or not to wait. I think 3.6 for sheung wan is too high for a 570 sq feet. So still looking around but shockingly nothing avail in my budget of 2.7 here. Its a tough road anyone have any good agents for this area or midlevels west? thanks
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Cym. I really don't think you'll find 570 sq ft gross in Sheung Wan for 2.7m unless you are very, very lucky. You'd be looking at an absolutely desperate seller - but there aren't any of those left at the the moment as they were shaken out during the Lehman crisis. Sheung Wan and Sai Ying Pun are going up in the world with the MTR link . May be Kenndey Town - but it also will have an MTR. You may want to consider the NT on that budget.
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jsfj
15 yrs ago
Reading this thread has been really really helpful. Can any one tell me the ins and outs of buying an old flat? I heard that banks won't lend you 100%?
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