Overview of the Sale

In a stark reflection of the current state of the Hong Kong real estate market, one homeowner has taken a significant hit with the sale of their property at Lohas Park Phase 4. On November 17, 2024, it was reported that a three-bedroom apartment located in Tower 1B dropped in value, incurring a staggering loss for the seller after seven years of ownership.

Initial Listing and Sale Price

Initially listed at an ambitious HK$12 million in August, the property—boasting a usable area of approximately 700 square feet—was swiftly marked down to HK$9.55 million. After extensive negotiations, the unit sold for just HK$9.1 million, equating to around HK$13,000 per square foot. This meant the original owner, who purchased the apartment back in October 2017 for HK$9.751 million, suffered a loss of approximately HK$651,000, or about 6.7%.

Market Trends

The timing of the sale highlights a troubling trend in the region, especially in the Tseung Kwan O area, which has seen a significant downturn in second-hand property transactions. In the first half of November alone, the area recorded only 101 second-hand sales, a steep drop of about 30% from 143 transactions in the same period the previous month. The majority of these deals were concentrated near Tseung Kwan O Station, with 29 sales, while Lohas Park accounted for about 22 transactions.

Economic Context

As Hong Kong grapples with economic challenges and escalating interest rates, many sellers are increasingly caught in a predicament where they must accept losses to offload their properties. This case serves as a grim reminder of the complexities within the property market and raises questions about future investments in the region. Could this signal a larger trend affecting property values in Hong Kong? Only time will tell!