Hong Kong's low-density luxury housing market continues to be under pressure, Sai Kung Clear Water BayAolongThe latest record was a shocking loss. Liao Zhenxiong, Sai Kung sales director of Century 21 Qifeng Property, revealed that the four-bedroom unit in Room A on the middle floor of Block 9 of the housing estate was sold for HK$23.48 million, a drop of nearly 30% from the purchase price seven years ago, making it one of the most eye-catching loss cases in the luxury housing market in recent times.
■ Transaction details
▸ Property information: 1,837 square feet of usable space with four bedrooms and two suites + a maid's room
▸ Transaction price: 23.48 million (28% lower than the first-hand price of 32.51 million in 2018)
▸ Book loss: 9.03 million yuan (equivalent to an average daily loss of 3,534 yuan)
▸ Price per square foot: $12,782 (about $6% lower than the market price of similar units)
▸ Holding period: 7 years (June 2018 - June 2024)
Market analysis pointed out that this transaction highlights three major market phenomena:
1️⃣ New Territories East luxury homes are less resilient
2️⃣ Liquidity risk of large units is rising
3️⃣ Long-term investors stop loss and cash out trend
It is worth noting that the unit was initially priced at $25.8 million, but was eventually sold at a price reduction of $2.32 million, with a bargaining range of $9%, reflecting the owner's determination to sell the unit. Liao Zhenxiong added that the current market value of similar units is about 25 million yuan, and the transaction price is still 6% lower than the market price, indicating that the buyer's bargaining power has significantly increased.
Industry insiders believe that this case may trigger a chain reaction, especially for first-hand luxury housing projects purchased between 2016 and 2018, some of which may suffer book losses of more than 20%. As US interest rates remain high, the luxury housing market is expected to enter a period of deep adjustment, and owners with weaker holding capacity may need to further reduce prices to sell their properties.
(Note: According to the definition of the Hong Kong Land Registry, the saleable area refers to the building area of the residential part, including ancillary spaces such as balconies and work platforms)
