Park Island, Ma Wan, Hong Kong

According to agents on the island last week was a busy month, with lots of enquiries from potential buyers. I was sent the article below by a property agent on Park Island: Park Island Property Newspaper Article In summary, the article reports that  "small size apartment" sales broke record twice within the last month. Park Island, Block 17, Mid Floor, Flat G Size 449sqft Price sold 3.12M ($6949 per sqf) The owner brought in 2010 $2.45M and how now sold earning $1.33M up 54.8%. According to the agent, the seller is now looking at buying a larger apartment on the Park Island. My comment on that is that whilst it appear the seller made a good profit, the larger apartment will of course also have risen in price, so from that perspective his "relative gain" may not actually be that much, as apartment prices everywhere (not just on Park Island) have risen substantially since 2010.   Some of these "small size" apartments were originally...

Seems prices on our island hit a record high last week, now just a touch short off 6000psf. http://hk.centadata.com/cci/estate_info_e.aspx?id=008600 A few comments to consider when interpreting the data, and deciding whether to buy or sell: 1 - Will prices hold up during a new financial crisis coming from Europe? 2 - Park Island prices migh be up, how how about rentals? If rentals are not also rising then yields are dropping (unless interest rates have dropped, which they cannot really do as they are already all time lows). 3 - How about transaction volumes? If prices are up, but in the context of transaction volume being very low, what does this mean. 4 - Are prices on Park Island basically mirroring HK property prices trends, or is Park Island over (or under) performing HK generally.

I just checked out the latest prices for Park Island transactions. The graph from Centadata is here: Park Island Property Price Graph According to Centadata, which is the data published by Centerline Property, prices are up 5% so far this month. They list an average price of $5995 per square foot, which seems low to me, when you look at current asking prices which seem to be on average around 6500-6800 per square foot, and around 12000 per square foot for the top floor penthouses and luxury apartments on Park Island. Also interesting to note is the transaction volume in the graph. The data reflects what agents have been saying, which is that this month has been quite active. With around 10 days to go before the month ends, it looks like monthly transactions for June apartment sales will have been quite healthy.