Park Island Price Graph
Below is a graph showing prices and transaction volumes over the last year which a reader sent me yesterday.
I am not sure what the Chinese characters say, but basically the horizontal axis is volume per month, and the vertical axis is the price per square foot.
Transaction volumes still look pretty low (lets see how many they have by end of the month), but what is clear is that those who are buying are paying increasingly higher prices. This makes me wonder whether the Government's "cooling measures" have actually been both unfair and counterproductive, as they make sellers less willing to sell, yet genuine buyers are needing to fork out more.
Transaction volumes still look pretty low (lets see how many they have by end of the month), but what is clear is that those who are buying are paying increasingly higher prices. This makes me wonder whether the Government's "cooling measures" have actually been both unfair and counterproductive, as they make sellers less willing to sell, yet genuine buyers are needing to fork out more.
What do you think?
Interesting. Would be interested to know if Anacapri or some of the top floor apartments account for the gains? I own a place already but have been waiting for the market to stablize or decline before I buy another as an investment. Now its possible we have reached a bottom, but I wonder if we will not get another economic crisis soon. That would be the time to buy.
ReplyDeletePRICES ARE STILL PRETTY GOOD VALUE. WAIT TILL U SEE WHAT THEY WILL BE IN 2 OR 3 YEARS ONCE THINGS START TO PICK UP AGAIN AND THEY COMPLETE THE BEACH EXTENSION ON PARK ISLAND.
ReplyDeleteThanks for the info. As a prospective buyer I have been looking at numerous units on Park Island over the last few weekends. Not a single seller is offering bank valuations. Bank valuations for the size I am after is around 5,000,000 yet sellers are holding our for around 10% or more, asking 5,500,000 and higher. So there's a clear mismatch in pricing at the moment.
ReplyDeleteActually this is pretty common and normal in Hong Kong. You will rarely get a sales price "at bank val" unless the market is really in decline. A 10% difference is really not much of a "mis-match" all. Rather, if you really want to buy, and you find a buyer who really wants to sell, your prices would likely meet halfway. So in your case, the ultimate price might be 5.3 million, for example.
DeleteIf you look at that spike its likely accounted for by a few isolated transactions. Time will tell if this sets a new benchmark or not, as volumes are still very low.
ReplyDeleteWhat suprises me about that graph it not the price psf, but rather that the price only recently seems to have spiked to that level. In actual fact prices have been at 7500 psf for the last year on Park Island so not sure why graph only shows this as a recent trend.
ReplyDeleteProperty prices are definately going to go up a lot in some parts of Hong Kong. New Territories, Park Island, Sheung Wan, and Kennedy Town are probably going to have the strongest increases, led by real end user demand. Mid Levels will also always be popular, especially for singles and newcomers. But the trend of expats moving to NT and Park Island for better quality living is going to drive prices up there.
ReplyDelete