According to Wu Zhaoji, the regional manager of Midland Realty, a recent transaction was completed for a mid-level H-room unit in Coronation Terrace in Tai Koo Shing. The unit has a practical area of 593 square feet and is designed as a two-bedroom unit. The original owner listed it for sale last August for HK$11.2 million, and after cumulative price reductions totaling HK$1.7 million or 15.2%, it was sold for HK$9.5 million, with a selling price per square foot of approximately HK$16,020. Wu Zhaoji further explained that the original owner purchased the unit for HK$12.8 million in March 2019 and faced a loss of approximately HK$3.3 million after holding it for five years, with the property value declining by approximately 25.8%.
In addition, Chiu Hung-wan, senior regional director of Centaline Property, mentioned a mid-to-high-level H-room unit in Shun On Court in Tai Koo Shing, with a practical area of 703 square feet and designed as a three-bedroom unit. It was recently sold for HK$10.25 million, with a selling price per square foot of approximately HK$14,580. It was learned that the original owner purchased this unit for HK$12.5 million in October 2017 and faced a loss of HK$2.25 million or 18% after holding it for over six years.
In addition to Tai Koo Shing, loss-making transactions have also occurred in the Yuen Long property market. Although the region recently set new high transaction prices for properties, the losses borne by sellers are still significant. Wang Qinxue, deputy regional manager of Centaline Property, recently revealed a case of turnover: a mid-level A-room unit in Grand YOHO in Yuen Long, with a practical area of 539 square feet, was sold for HK$8.15 million, achieving a price per square foot of HK$15,121. Despite setting the highest transaction price for this type of unit this year, the original owner still faced a loss of HK$2.458 million or approximately 23.2% after purchasing it for HK$10.608 million in August 2018 and holding it for about five and a half years.
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Regarding Tseung Kwan O, Wong Siu-ming, regional manager of Midland Realty, stated that they had just completed a transaction for a unit in Hoi On Court in Tseung Kwan O, with a high-level D-room unit in Block 2 and a practical area of 354 square feet, also designed as a two-bedroom unit. The unit was initially priced at HK$4.5 million, and after being listed for about a month, it was finally sold to a buyer in the area for HK$4.456 million, with a selling price per square foot of approximately HK$12,588. It is worth noting that the original owner purchased the unit for the same price of HK$4.5 million in January 2017 and, after holding it for over seven years, incurred a slight loss of approximately HK$44,000, with a loss ratio of approximately 1%.
Moreover, Ng Kam-ki, deputy regional director of Centaline Property, reported a successful turnover transaction in City One Shatin. Unit A in Block 43, a high-level A-room unit with a practical area of 284 square feet, was priced at HK$5.6 million last May. After several adjustments, it was reduced to HK$4.2 million earlier this month and then raised to HK$4.5 million before finally being sold for HK$4.5 million, achieving a price per square foot of approximately HK$15,845. The original owner purchased the unit for HK$228,000 in April 1984, and after holding it for about 40 years, earned approximately HK$4.272 million from the sale, with the property value increasing by approximately 18.7 times.
These loss-making transactions reflect the volatility and uncertainty of the property market. Property owners may face losses over a longer period due to factors such as market supply and demand and economic conditions. However, some property owners have achieved considerable appreciation over the past few decades. Market fluctuations are a normal phenomenon, and investors should consider various factors comprehensively when making decisions and carefully evaluate risks and returns.
