Table of Contents
Background of Loss-taking Transactions
Li Xiaomin, branch manager of Ricacorp Real Estate, revealed that the housing estate above Tsuen Wan West Rail Station isAll City Plaza"Recently, a second-hand loss-making transaction was recorded. The unit is Room E on the lower floor of Block 5, with a usable area of 839 square feet. It has three bedrooms and one suite with a "kitchen" (independent kitchen) and enjoys open sea views. It is a rare unit in the project. The buyer was a home-changer in the same district. As he valued the estate’s transportation advantages (about a 3-minute walk to MTR Tsuen Wan West Station) and its rare sea view, he quickly negotiated the price and took over the property at HK$10.76 million, with a usable price of HK$12,825 per square foot.
Property Price Trend Analysis
The original owner purchased the unit at a first-hand price of HK$12.381 million in 2017 and resold it eight years later, with a book loss of HK$1.621 million, a drop of 13.1%. This transaction reflects two market phenomena:
1. Adjustment of the property market cycle: Affected by the overall property market downturn and interest rate hikes, some owners who bought the property at high prices in the early years need to cash out at a discount;
2. Intensified regional competition: The supply of new projects in the same district, such as "The Pavillion", has increased in recent years, diversifying the demand in the secondary market.
Market dynamics and outlook
Currently, there are about 4 listings in City Place, with the lowest asking price starting from HK$12.8 million, which is about HK$191,000 higher than the current transaction price, indicating that owners have different confidence in the future market. Li Xiaomin pointed out that the three-bedroom sea view apartments in the housing estate have been in short supply for a long time. If the owners are willing to expand the bargaining space (about 5-8%), it is expected to attract powerful buyers who value the landscape and apartment type.
Expert opinion
Data from Centaline Property Research Department shows that the average second-hand price in Tsuen Wan District in 2023 will fall by about 11% from the high point in 2017, which is similar to the decline in this case, reflecting that the regional housing prices have entered a stage of adjustment. However, with the government's withdrawal of stimulus policies and stabilization of interest rates, transactions of high-quality apartments worth tens of millions of yuan have gradually picked up, and the number of cases with large discounts may decrease in the short term.
All City Plaza(English:Parc City)forTsuen Wan West StationTsuen Wan West (TW5) Cityside Development, located inHongkongNew TerritoriesTsuen Wan DistrictGreat RiverNo. 98, formerlyTsuen Wan Transport Complex. according toMTR CorporationThe plan, which was approved in 2011, allows for the construction of a total of seven properties, including Blocks 1 to 8 (without Block 4), built around a circular inner garden, providing approximately 953 units ranging from one to three bedrooms, with two-bedroom units being the main focus. Depend onChinachem GroupandMTR CorporationDevelopment, architects forWang OuyangArchitects firm, contractor isGolden Gate Building. The project was named in August 2017 and sold out in October of the same year. And moved in on April 10, 2019. The base shopping mall of this project isNina Tower II.
Further reading:
- The cold snap in the property market continues! Tseung Kwan O "the worst-hit area" suffered another shocking loss: 2.34 million evaporated in 7 years, and the owners lost 28%
- One year after the removal of Hong Kong's property market regulation, the market value of residential properties has evaporated by US$61.7 billion, and the industry calls for new policies to save the market
- [In-depth analysis of Hong Kong property market] Property prices plunged 28% in the first anniversary of the withdrawal of the hotline, and owners’ wealth evaporated by nearly 500 billion. Experts call for more policies to save the market
