Huijing's three-bedroom apartment lost 3.13 million yuan in six years, and the depreciation rate exceeded the peak of the epidemic

Loss shocks the market

Lam Tin Index Railway PlateSceneway GardenShocking "liquid-loss" selling! A three-bedroom unit on a very high floor was sold for HK$7.42 million, a drop of HK$3.13 million from the purchase price in 2019, equivalent to a loss of HK$1,430 every day the door is opened. What is even more shocking is that this transaction not only broke the housing estate's record for the largest loss this year, but the depreciation rate of 29.7% also exceeded the average decline of 22% during the peak of the epidemic in 2022 (Central Property Data), reflecting that the owners' mentality of stopping losses has reached a critical point.

The railway defense line was completely lost

The latest statistics show that the loss rate of the top ten railway housing estates this month has soared 1.8 times compared with the same period last year, including:

• Tseung Kwan O Sunrise Bay: The average loss of 3-bedroom units has expanded to 18%
• Tung Chung Citygate: 2-bedroom apartment transaction prices return to 2016 levels
• Whampoa Garden, Hung Hom: Owners have lost an average of 12% after holding the property for 5 years

"This wave of adjustments is not an isolated phenomenon." MTR properties have always had a 15% premium, but current buyers would rather buy them at the price of old properties in the urban area. "The collapse of psychological defenses is more worthy of attention than the actual decline."

Multiple negative impacts

1. Liquidation of assets due to immigration: Data from Midland Realty shows that in the first quarter of 2024, immigration listings accounted for 37% of the total listings, a four-fold increase from before the epidemic.
2. The interest rate curse remains unsolved: Based on the current H-rated interest rate of 4.125%, the monthly payment for the above-mentioned Huijing unit is HK$11,200 more than in 2019
3. New housing estates are attracting customers: the second-hand prices of new housing estates such as Kwun Tong Grandview are close to those of Grandview, forming a "new and old price inversion"

Escape route map

✓ Property holders: consider reselling to rent, taking advantage of the MTR rental yield of 2.8%
✓ Bargain hunters: lock in "double over-standard" - over-sold 15% or more + rent covers the mortgage 80% property
✓ Reconstruction of apartment type: Converting a three-bedroom apartment into a "1+1 studio" to improve rental competitiveness

The market is witnessing a structural change in the Hong Kong property market. Does this tragedy at Huijing Property foreshadow a new round of price-cutting? We will continue to track!

Sceneway Garden(English: Sceneway Garden)HongkongKowloonOne of the largest private estates, located inMTRLam Tin StationThe upper part is the property along the railway. The estate was acquired byEastern Harbour TunnelThe consortium was granted the development rights and the project was completed and occupied from December 1991 to April 1992. There are 17 towers in total, providing a total of 4,112 residential units.

Further reading:

• Huge losses in Huijing Garden within three days