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The new housing estate "Xing Kai. Embankment" in Fo Tan, owned by Central China Properties, recently recorded its first second-hand transaction that shocked the market. The owner of a one-bedroom unit was forced to leave the market after holding the property for more than three and a half years, with a book loss of up to HK$21%. If the transaction costs are taken into account, the actual loss is more than HK$2.05 million, making it a typical case of failed new property investment in recent years.
According to authoritative sources in the real estate industry, the unit being sold is Room G on the high floor of Block 5, with a usable area of 347 square feet and an open-plan layout. The original owner initially listed the property for $6.5 million, but after negotiation, the buyer finally sold it for $6.25 million, equivalent to approximately $18,012 per square foot. It is worth noting that this transaction is not only the first second-hand sale of the housing estate after its occupancy, but also set a record for the largest book loss in the history of the project.
The loss amount may exceed 2 million yuan
A check of the Land Registry data shows that the original owner purchased the unit for RMB 7.948 million during the launch of the new project in October 2021. After holding the goods for nearly three and a half years, the book value has evaporated by 1.698 million yuan, a drop of 21.4%. If we take into account the HK$300,000 in stamp duty paid when entering the market that year (approximately HK$3,751T of the property price), plus miscellaneous expenses such as legal fees and commissions, the actual loss amount may exceed HK$2.05 million, which is equivalent to a reduction of HK$25,81T in the unit value during the holding period.
Senior real estate analysts pointed out that this "bloody" transaction reflects a number of market warnings: first, the myth of the anti-price drop of the New Territories East railway over-cover projects has been shattered; secondly, the problem of weak take-up capacity of open-plan nano-units has emerged; thirdly, the developer's aggressive pricing that year led to a gap in second-hand take-up. Liu Jiahui, chief analyst of Midland Realty, stressed: "This case will put pressure on the sales of first-hand surplus properties in the same district, and may even trigger a chain reaction, prompting some owners who are in urgent need of cash to increase their room for negotiation."
The Federal Reserve maintains high interest rate policy
Market observers particularly remind that as the US Federal Reserve maintains a high interest rate policy and the pace of economic recovery in Hong Kong has been slower than expected, the secondary market for such high-premium new properties may face even more severe tests. Centaline Property Research Department predicts that in the next six months, there may be more cases of "apparent profit and hidden loss" in second-hand properties similar to "Xingkai.Dyke". Investors are advised to carefully evaluate the holding costs and market risks before entering the market.
