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[Property Market Express] The demand for disposal of Hong Kong immigrant assets continues to impact the secondary market, and the North District of the New Territories has seen eye-catching transactions again. According to Lai Shu-sum, co-director of Century 21 Qifeng District, the middle-floor Unit J of Block 6 of Fanling Home Ownership Scheme Rong Fuk Centre was recently sold for HK$3.35 million (after paying the land premium), which is a significant discount compared to the bank's valuation system, setting a record for the largest bargaining space for the housing estate this year.
Immigration to Australia reduced by HK$650,000
The unit sold is a practical two-bedroom unit with a usable area of 479 square feet (about 44.5 square meters). The original owner planned to immigrate to Australia, so he tested the market with HK$4 million last month. In the end, he reduced the price by a total of HK$650,000 (16.25%) and quickly cashed out. It is worth noting that, referring to the online valuation system of major banks, the valuation center of the property reached HK$4.5 million. The transaction price this time deviated from the valuation by 25.6%, with the price per square foot being only HK$6,994, which was 15.7% lower than the average price per square foot of the housing estate of HK$8,300 in the past three months, and the price difference phenomenon was convex.
Market analysts pointed out that this transaction has multiple indicators
1. Breakthrough in bargaining space: The valuation discount of 25.6% is more than double the average bargaining rate of second-hand residential properties in Hong Kong (about 8-12%).
2. Liquidity differentiation of HOS: Although premium-paid flats have the advantage of a free market, urgent sales still require substantial concessions
3. Regional market under pressure: Compared with the index housing estates in Sheung Shui, Tai Po and other New Territories North, the price adjustment in Fanling is more significant
Tang Zhaoyuan, chief analyst of Lianzhun Real Estate, added that the proportion of immigration properties has continued to rise recently to 18-22% of the overall second-hand transactions. The average transaction cycle of this type of property is 40% shorter than the market benchmark, but the price is to accept a price discount of 15-25%. Especially for small and medium-sized units priced below HK$5 million, as most of the buyers are first-time homebuyers who need to apply for mortgage loans, in an environment where banks are becoming more cautious in valuations, it is more likely to form a three-party game of "owner asking price - bank valuation - buyer's bid".
Set a new record for the largest discount in a housing estate this year
According to data from the Land Registry, Rongfu Center has recorded 9 second-hand transactions so far this year, of which 3 were clearly marked as urgent sales for immigrants. The average transaction price of such units was 19.8% lower than that of similar properties. This transaction not only broke the record for the largest discount in the housing estate this year, but also fell by 37.7% compared to the peak transaction price of HK$5.38 million for the same unit type in 2021, reflecting that the market has entered a stage of deep adjustment.
The reporter checked the Centa-City Leading Index (CCL) and found that the New Territories East Index has fallen 16.4% from its historical high in 2021, and communities where immigrant properties are concentrated for sale usually experience excess declines. Industry insiders suggest that buyers who are interested in taking on immigration properties should pay special attention to: 1) verify whether the unit involves potential liabilities such as inheritance tax 2) confirm the bank's latest valuation and mortgage ratio 3) understand the potential risks brought about by special transaction terms (such as cash transactions or extremely short transaction periods).
Wing Fok Centre is a private sector housing estate in Hong Kong. It was developed by Ruichang International Development Co., Ltd. It is located in Luen Wo Hui, Fanling, North District, New Territories. It has a total of six buildings. It was occupied in September 1993. The initial price was HK$552,100 – HK$931,500.
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