HK office space deals plunge in January

The 50 major grade A office spaces only recorded three transactions in January, down by 57 percent month-on-month and hit a two-year low, due to the Wuhan coronavirus crisis, according to property agent.

The agent expects the coronavirus crisis to weigh on the market in the short term and dampen sentiment.

The agent also estimates the transactions in the first quarter to remain low as the epidemic may last for a few months.

(The Standard)

Secondary deals remain subdued

The escalating Wuhan coronavirus epidemic continued to weigh on the sluggish local property market, with secondary transactions for major projects remaining in single digits last weekend.

A property agency recorded only three secondary deals for the 10 major housing estates it tracks, the same number as the previous weekend. Visitings have plunged by 70-80 percent last weekend amid the outbreak, according to the chief executive of the property agency.

Another property agency saw single-digit deals for a third weekend, with four units sold in the 10 major projects last weekend.

In Tin Shui Wai, a 551-square-foot flat at Kingswood Villas changed hands for HK$5.18 million, or HK$9,401 per sq ft, after the vendor cut 11 percent from the initial asking price. South Horizons in the Southern District and City One in Sha Tin saw one transaction each.

In Tuen Mun, a 536-square-feet flat at Ori changed hands for HK$6.18 million, or HK$11,530 per sq ft, after HK$1.32 million was slashed from the original asking price. The vendor would incur a loss of about HK$100,000 after paying stamp duties and commission fees.

In Yuen Long, In 498-sq-ft apartment at the Grand Yoho a sold for HK$7.68 million, or HK$15,422 per sq ft, compared with an initial asking price of HK$8.08 million. The seller bought the unit at HK$69.5 million in 2016.

Elsewhere, a three-bedroom unit at Lake Silver in Ma On Shan, where three confirmed patients of the Wuhan coronavirus have lived, changed hands for HK$14.8 million, or HK$15,102 per sq ft, around 10 percent lower than market valuation. A two-bedroom flat at Sunshine City in the same district sold for HK$5.58 million, or HK$16,034 per sq ft, after HK$620,000 was cut from the initial asking price.

The former owner of an 826-sq-ft apartment at The Pavilia Bay, Tsuen Wan, sold the unit at HK$17.3 million, or HK$20,944 per sq ft, 13.5 percent higher than the initial purchase price in 2017.

Landlords were also cutting rents to woo tenants with a three-bedroom flat at The Belcher's in Kennedy Town rented for HK$51,000 per month, or HK$46 per sq ft, after HK$5,000 was slashed from the original asking price.

However, in the primary market, a 1,425-sq-ft special unit at Poggibonsi in Discovery Bay sold for HK$36 million, or HK$25,263 per sq ft, the highest price for the project.

(The Standard)