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HONG KONG | The Coronation | U/C
Profit will depend on high flat prices, say agents
9 May 2007 The Standard http://img689.imageshack.us/img689/5...heheritage.jpg Estate agents reckon the consortium that bagged the residential site at Yan Cheung Road in West Kowloon will have to sell flats for at least HK$8,000 per square foot to make a profit. Midland Realty chief analyst Buggle Lau Ka-fai said that with accommodation value at HK$6,147 psf, break-even price would be about HK$7,000 psf. ``With a 20 percent margin, the selling price would be about HK$8,000 (psf),'' Lau said. While the site may not compare with the location of the Waterfront at Kowloon Station for example, the projected selling price represents a 20 percent premium on secondary market prices in the area. Although the site's final price of HK$4 billion was on the low end of market estimates, it was still a good outcome, Lau said. He noted the site's accommodation value was about 14 percent higher than two plots sold at auction in September 2005 when two adjoining sites opposite Hoi Fu Court and Park Avenue fetched between HK$5,300 and HK$5,400 psf. It was also a consortium involving Sino Land (0083), Nan Fung Development, and Chinese Estates Holdings (0127), that won those sites. Lau said the latest land sale may not stimulate secondary prices too much as the market had been over-optimistic with their estimates before the auction. ``With [the final price] at the lower end of the market, some owners may not be so aggressive in hiking their prices,'' Lau said. Ricacorp Properties executive director Willy Liu Wai-keung agreed the lower-than-expected price would be healthier to the market. He said if the site had sold for a higher price, then the Hoi Fai plot set for auction could be bid even higher. ``The market may not accept such price levels,'' Liu said, referring to secondary market owners possibly being too aggressive in pricing. Hong Kong Property Services (Agency) reported that some owners are increasing asking prices by 2 to 6 percent after the auction. |
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Deals so thin during record low weekend
The Standard Wednesday, December 28, 2011 The property market over the long weekend was the quietest on record. According to Midland Realty, a total of 16 deals were struck at the 10 benchmark residential projects over the four- day Christmas weekend, a far cry from 67 last year and 80 in 2009. It is also the first Christmas weekend since 2008 to see zero deals in some of the benchmark projects - Laguna City in Kwun Tong, Whampoa Garden in Hung Hom, and Metro City in Tseung Kwan O. A homeowner slashed HK$250,000, or 6 percent, off the asking price before selling a 706-square-foot, two-bedroom flat at Park Island, Tsuen Wan, for HK$3.85 million. The per-square-foot price of HK$5,453 is 5 percent lower than elsewhere in the neighborhood. "Homeowers in the area generally allow deeper price cuts to seal deals," said Sunny Leung, a Centaline agent. "A lot of the potential buyers had left Hong Kong for vacation, which lowered the number of home viewings," said Midland Realty vice chairman Albert Wong Kam-hong. "Some new projects are about to start selling, resulting in buyers' attention turning to the primary market." Sino Land (0083) is set to see robust demand for the first batch of 50 flats at The Coronation in West Kowloon. The flats - of between 510 and 1,492 sq ft - cost HK$13,688 psf on average. Sales are expected to start on Friday. The project, near the future Guangzhou-Shenzhen-Hong Kong express rail link station, will provide a total of 740 units. Cheung Kong (Holdings) (0001) sold around 26 units at Festival City 3 in Tai Wai. Nearly 500 out of 1,536 flats at the project have been sold. The project attracted around 20,000 visitors at the weekend, the developer said. Wang On Group (1222) sold two flats at The Met.Focus in Hung Hom. Around 30 of the 53 flats have been sold. |
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