The owner of a 2-bedroom flat in Cloudway, Pak Shek Kok, Tai Po, recently sold the flat at a "big price cut", and the transaction price was nearly 20% lower than its purchase price.
Centaline City Leading Index CCL since last year's record high has fallen nearly 18%, and again to a new low of more than 5 years, meaning that after 2017, more than 100,000 buyers into the market, now there is a chance to sell a property and even lose money.
According to market statistics, the first 8 days in December the secondary market has added nearly 40 book loss transactions, that is, the transaction price has been lower than the owner's purchase price, the total loss amount involved more than 32 million, an average loss of more than 10%.
Among them, about 34 sales at a loss, the original owners bought the units after 2017, accounting for more than 80% of the overall losses.
However, it should be noted that in recent years, in order to attract buyers to the market, developers have been offering a large amount of "cash rebate" subsidies behind the sale of new properties, with the rebate amount ranging from a few percent to 20%, reflecting that the transaction price does not indicate the real transaction price, resulting in some of the recent "miserable" cases.
In particular, the semi-new buildings occupied in recent years are involved in new construction cash rebate, but after deducting the rebate, the owners leave the market with "explicit losses and hidden profits" in real terms.
As to know how much rebate is hidden in the new construction, the public can check the transaction record book in the "First-hand Residential Properties Sales Information Website".
A high-rise two-bedroom unit with a saleable area of 509 square feet in Block 11 of Cloud Club in Pak Shek Kok, Tai Po, has just changed hands for $8.68 million at $17,053 per square foot.
The original owner bought the unit from the developer in May 2019 for about $10.56 million, holding the property for just over 3 years, and left the market with a huge loss of $1.88 million or nearly 18%.
However, check the first-hand transaction record book, the owner bought the unit that year, it was provided with a large number of cash rebate incentives from the developer, including "stamp duty cash rebate: stamp duty cash rebate amount equal to 5% of the property price and HK$5,000", "paid off the property price cash rebate amount equal to 8% of the property price", "paid off in advance Cash rebate: 6% of the purchase price on or before 31 October 2019", "Cash rebate for SHKP Club members equal to 1% of the purchase price", "Cash rebate for SHKP Club members equal to 1% of the purchase price" and "Cash rebate for SHKP Club members of HK$38,000".
If all the above rebates are added up, the total amount involved ranges from about $5,000 to about $840,000, with a total value of over $2.1 million, which is equivalent to about 20% of the property price.
After deducting all the rebates, the so-called "light pig price" of the unit on that day is only about $8.4 million, this time the secondary transaction price is in fact similar to three years ago, the owner may not necessarily sell the property "miserable loss", but may be "explicit loss and dark profit", whether the buyer to carry out to the shooter is a matter of opinion.
