AAP 2 HK Apartment Prices Go Through The Roof

Most Expensive Apartment in HK

Sun Hung Kai Properties, the world’s largest developer by market value, has raised the price of two penthouses in Hong Kong by 50 per cent to a record $HK75,000 ($11,075) a square foot as demand surges for luxury apartments. The units will be offered for $HK300 million ($44.3 million) each, said Victor Lui, executive director of the company’s real- estate broker. The apartments each have 372 square metres (4000 square-feet) on three floors, an outdoor garden and a swimming pool.  The number of sales and purchase agreements on Hong Kong homes worth at least $HK10 million ($1.47 million) more than tripled to 500 in August, from a year earlier, according to the Land Registry.

Homes at that price in Asia’s second-most expensive market after Tokyo have appreciated by 30 per cent this year, Centaline Property Agency estimates. These have been driven higher by gains in the Hong Kong and China stock markets and record-low mortgage costs. “The buyers will most probably be the ultra-rich mainland Chinese who like the location,” Margaret Ng, senior director of client development and research at CB Richard Ellis Group Inc. in Hong Kong, said by telephone. The properties, the biggest at the Cullinan development in the Kowloon district, were priced at HK$50,000 ($7,400) a square foot when Sun Hung Kai started selling units at the project in February. The Cullinan has 825 units and at 270 metres will be Hong Kong’s tallest residential building. Cullinan residents will also get access to an exclusive private jet service, provided VistaJet Flight. Hong Kong’s year-long recession ended last quarter, when a rebound in exports to China helped the economy grow 3.3 per cent from the previous three months. Wealthy buyers from mainland China have been “buoyed by gains in the equity market,” Yuwa Hedrick-Wong, an economic adviser for MasterCard, said by email.

“Hong Kong’s high-end property market is closely affected by demand from the affluent of mainland China,” Hedrick-Wong said. Mainland Chinese buyers accounted for between 20 per cent and 30 per cent of the almost 400 units sold at the Cullinan, according to Sun Hung Kai’s Lui. The Shanghai Composite Index rose 51 percent in the last 12 months, making it the world’s best-performing benchmark globally a year after the collapse of Lehman Brothers Holdings sparked a credit crunch. Hong Kong’s Hang Seng Index has gained 17 per cent in the same period and is up 49 per cent this year. The highest price paid for a luxury property in the city in August was HK$212.9 million ($31.4 million) in PCCW’s Bel-Air project in Pokfulam district, Centaline said in a report this week.

Hong Kong’s record price for a luxury home was for a house in Sun Hung Kai’s Severn 8 project on the Peak that sold in the first half of 2008 for almost HK$56,000 ($8275) a square foot. Sun Hung Kai doesn’t anticipate the higher price at Cullinan will turn off prospective purchasers. “We’re in negotiations with interested buyers, some of whom wanted alterations,” Lui said. “They are receptive [to the price increase] considering the luxury sector has outperformed” the property market as a whole in Hong Kong.

The fact is..

We are at >90% discounted price

Property price at good location will continue to hit new high every year and nobody can stop it. Do you believe me? News above revealed that Hong Kong property hit all time high bringing them to RM38K psf. Yes that is RM38, 000 psf and I think none of Malaysia property ever traded at this price so far. That mean an average unit of 500sf it will easily cost you around RM 20M. Can you afford it? The fact we know, for high-end property in Malaysia mainly located at KLCC area only cost us less than RM3000 psf. This virtually computed into more than 90% discount price over their luxury properties in HK. Will our property commanding that prices in the future? How are we going to purchase if this really happen? How much we need to set aside for monthly installment and initial payment? None of us can answer these questions including myself. I understand that in HK, bank only provide up to 60% financing for property buyers. That means you need to have at least RM 2M-RM 5M cash in hand first to pay for initial cost like down payment, legal fees, furnishing and some renovation. Do you have RM 2M in cash hand now? Don’t say RM 2M, I bet some of you don’t even have RM 20K cash in hand..right?

My dear friend, our money is getting smaller and depreciated in value day by day. I have been repeating this message over and over again hoping all of you will wake up now rather regretted later. Sad to know, majority of us still “TRY NOT TO UNDERSTAND” what message I want to pass on here. Things get worst when I know one of my close relative spends few thousand a year travelling all over the world for leisure and holiday yet not realizing the true beauty of property. For your information, most of the time he will complain to me about the over pricing of hotel overseas especially HK & China which almost the same size of our bathroom. To me it’s already clearly indicating how properties values appreciated in developing country benefiting from the strong economy growth within Asia, but sad to say he never learn until today. He still strongly support bank FD’s & enjoying every trip as pure holiday. Are you doing the same thing? Travel without bringing your brain and treating holiday as “HOLIDAY”? For me, I always treating holiday as eye opener, trying to see other part of the world at different perspective, capitalizing their situation and reflect it into our area for better future decision. This skill is known as “observation’ skills. Remember, the more property you explore and analyze the better your foresight and decision making.  

Trust me…We learn much faster through sharing and observation. My advices to all of you please ensure on whatever thing you do in life it will add value into your wealth. If not you better avoid it simply because you are wasting your own resources especially money and time which is limited. But it’s your own choice, at the end of the day you have to take full responsibility and I have no right on your decision which affect your future.  None of us should make mistake repeatly in their life knowing we are learning and growing every day. Please fully capitalize all current opportunity as you might not have such opportunity anymore. At least when our condominium prices hit RM5000 psf within next the 10 years you have something in hand to celebrate. Otherwise you are “OUT” from the party even before it begin.   Happy Investing.

You cannot Grow Land..CK Wong & MY Dad 

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