News Hong Kong Property & Finance

Asking Prices, Bank Valuations, and Sales Prices

ORIGINAL POST
Posted by crestrider 13 yrs ago
My tenant has just given notice and I'm tempted to put on for sale to test the market. The Bank Valuation is between HK$16-16.2m the agents have recommended marketing at around 8-10% above this. Not sure if anyone has recent experience of selling/buying and can advise on roughly where asking prices tend to be vis a vie bank valuations or indeed what is the benchmark for sales prices vis a vie bank valuations. I'm not in any rush to sell and if I dont receive any offers within 6-8 weeks or so I will re rent. I am also under the impression we may get a higher offer given the vacant possession as opposed to a sale with lease. Graetful for any responses and I will post updates to give information on where the market is at.

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COMMENTS
crestrider 13 yrs ago
Oly 88 - thanks for the response and advice - it will have a tart up soon. Its 1200 sq ft at the recent highest price similar units were going for 15,000 a sq foot but a little less now maybe 5% off the peak price.

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OffThePeak 13 yrs ago
Bank valuations do not take into consideration views.


So two properties in the same tower may have similar bank valuations, and the actual transaction value for "the flat with the better view" may go much higher.


Many agents are not fully aware of this important fact

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crestrider 13 yrs ago
Quick update - after a slow start getting the property marketed - we had our first offer on Wednesday at HK$15m. Bank valuations are at HSBC 16 and Hang Seng 16.5. Offer rejected will see whether now the policy address is out the way we get a better offer or two from here.

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crestrider 13 yrs ago
Unfortunately HSBC are first in the queue for their mortgage money back - still I think this next few weeks will be a key period for the market. Now the policy address is out of the way the market should pick up both in terms of transactions and prices - if it doesnt then i will put it back on for rental.

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crestrider 13 yrs ago
To update - we had a further offer of 16m again too low for us to negotiate to a price we could have been happy with. Then out of the blue we were offered a new tenant at 10,000 a month more than the old tenant was paying even after having agreed a new market rent only in feb 2011. Am minded to put a new tenant in place - will decide Monday. This may explain a lot about why the market is where it is at the moment - namely sales market is weak - no real need to agree a lower sales price though when rental market is so strong. So perhaps rentals will have to fall first before the bears will have their day?

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