More second-hand homes in large estates in Quarry Bay are being sold at lower prices.
Two flats, in Nan Fung Sun Chuen and Kornhill, were recently sold at price levels last seen in mid-2014, a half-year low.
The owner of the Nan Fung Sun Chuen apartment initially asked for HK$4.5 million (US$580,000), about HK$300,000 below the market, and eventually struck the deal at HK$4.38 million.
The price is about 8.8 percent lower than that of a similar home sold previously and 30 percent beneath the high of last July.
Jason Yuen, sales manager for Centaline Property Agency’s Quarry Bay district, said the seller is an investor.
The two-bedroom flat is on a lower floor, and the price is equivalent to about HK$11,200 per square foot.
Yuen said seven flats in Nan Fung Sun Chuen have been sold so far this month, more than the six sold all of last month.
Meanwhile, the flat in Kornhill was sold at HK$5.5 million.
The seller initially advertised it for sale in October, with an asking price of HK$6.98 million, then cut the price twice after considering the market situation.
The transaction price translates to about HK$11,900 per square foot.
Yuen said that with more supply of new homes to come, the price of second-hand homes will remain under pressure.
Rents in Hong Kong’s main urban districts are also falling.
Ocean Li, a district manager from Midland Realty, said a 391 sq ft two-bedroom flat on a middle floor of Block H in Amoy Gardens was leased at HK$9,500 a month, a two-year low. The average rent works out to HK$24.30 per sq ft.
The minimum asking rent in this estate is HK$10,000 a month.
Li said it is because the tenant must pay to renovate the flat that the landlord agreed to lease it at the lower rate.
[Chinese version 中文版]
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