According to the Land Registry, in the first half of the property market recorded a loss (i.e., the selling price is lower than the purchase price) of the resale of a total of 1,967 cases, accounting for the same period of the overall ratio of 14.6% of the transactions, since the second half of 2009, a 14-year high.
The top floor of a group of units with rooftop featured in Kowloon City Hiu Wui, which has been occupied for nearly a decade, was recently sold for about $13.5 million, representing an erosion of $4.55 million or 25% over the purchase price in 2018, which is the largest erosion in the history of the estate, and the cost of the unit has hit a new low for at least three years.
Market news pointed out that the above unit for the top floor of the Kowloon City Xiaohui characteristics of households, the practical area of 700 square feet, 3 room separation, for the whole building area of the largest unit, with a rooftop 221 square feet.
It is reported that the featured unit was launched in September 2021 with an asking price of $19.5 million, and then in May 2022, the price was reduced to $18 million. However, the above unit has been unattended, until recent months and then reduce the price to $16 million to put on sale, and finally won the buyer to negotiate, but eventually further reduced to $13.5 million to sell, the transaction foot price of $19,286, foot price fell through the $20,000 level.
Checking the information, the original owner in May 2018 to $ 18,051,400 a single-handedly from the developer to buy the unit, holding the goods for about 5 years book depreciation of $ 4,551,400 or 25.2%. Together with the stamp duty payment of about $677,000 and commission expenses of about $135,000 at the time of purchase, it is expected that the actual amount of loss will be as high as $5.36 million.
Ricacorp real estate research department director Chen Haichao said, even though the property market in the first half of the clearance after the price and volume rise, but more than a shorter period of possession of the owners of the selling price to leave the market, so the second-hand private residential resale profit ratio and the average earning rate of the double against the market continued to test low, but the decline has been compared to the second half of last year, significantly narrowed.
Land Registry information shows that the first half of the loss recorded in a total of 1,967 cases of resale, accounting for 14.6% of the overall ratio, since the second half of 2009, 28 "half-year" high; if calculated by the number of cases, is the second half of 2010, the introduction of spicy measures in the property market so far, 13 years since the most erosion of the case by half a year.
However, on the whole, the first half of the small owners of property sales is still the majority of money. Land Registry information shows that in the first half of this year, Hong Kong recorded a total of 11,381 private residential resale profit sale and purchase registration, accounting for the same period of time known on the purchase price of the second-hand private residential sale and purchase ratio of 84.6%, in addition to a continuous decline of nearly five years, for nearly fourteen years to a new low, is the worst since the introduction of the spicy measures.
The average profit margin, the first half of each private residential resale case average profit margin of 49.5%, compared with the second half of last year, down 3 percentage points, for nearly 21 "half a year" (i.e., 10 years and a half) since the new low, and for eight consecutive "half a year" recorded a decline.
Chan Hoi Chiu pointed out that last year, the property market is cold, property prices fell about 15%, coupled with the last two years, some people migrated overseas, some of the owners who entered the market at a high premium 5 to 7 years ago, and ultimately decided to sell, and encountered a downturn in the property market, so the second-hand transfer of the profit ratio and the average earning rate in recent years to pick up a step down.
Looking ahead to the second half of this year, although it is expected that the property market consolidation is still inclined to rise, but the rate of increase is difficult to outweigh the previous peak in the property market and high premiums to enter the market, so it is expected that the profit ratio and profit margins are still under pressure, but the decline is expected to be further narrowed; hope that the second half of the profit ratio is expected to be maintained at 83%, while the profit margins expected to be maintained at the level of 48%.
