After the heavy rainstorm of the century, only one second-hand transaction was recorded on the Red Hill Peninsula in Tai Tam, which was a large loss case. It is reported that the transaction came with a stringent clause. If illegal structures need to be demolished before the transaction is completed, the new buyer will be fully responsible. (Information picture)
In early September this year, the worst rainstorm of the century brought to light the problem of unauthorized construction in many bungalows in the Hongshan Peninsula, a luxury housing estate in Tai Tam, Southern District, Hong Kong Island. Afterwards, many owners of Red Hill were seeking to sell their properties at a significant discount. So far, only one second-hand transaction has been recorded in the housing estate after the black rain, which was a case of large loss. The split-price transaction was completed at the end of last month, but it is understood that the original owner included stringent clauses when selling the property, stating that if the government orders the demolition of illegal structures before the transaction is completed, the new buyer will be fully responsible.
The above-mentioned red hill peninsula house was sold as a double-numbered house in Songbai Path, with a property area of more than 3,142 square feet, an 834 square foot garden and a roof of more than 1,300 square feet. It is a four-bedroom apartment. The property was sold at the end of September this year at a loss price of NT$60 million, and the price per square foot was approximately NT$19,096. The original owner was a “new Hong Konger” who purchased it for NT$111.5 million 6 years ago, with a large loss of approximately NT$51.5 million. Yuan or about 46% left the market, which is the transaction case with the largest loss in housing estates in recent years.
According to information, the new buyer of the property, whose surname is Lin, needs to pay stamp duty of NT$2.55 million when entering the market, accounting for 4.25% of the property price, which means he is buying the property as a first-time buyer. It is reported that the provisional sale and purchase agreement for this transaction contains an attachment, which is listed as the “Unauthorized Alteration of Building Private Additional Agreement”, which states that the above-mentioned bungalow will be sold in its current condition, and involves a number of changes, including the removal of the garden ground and the Dig down and wait.
In addition, the document also states that after the buyer and seller sign the provisional sales and purchase agreement, if the original owner receives a letter from the government before the formal sales and purchase agreement or the property is completed, any orders regarding the building (including repairs, restoration, or demolition) will be issued. It is the responsibility of the new buyer, who knows that no order can be issued in this regard and refuses to settle the property. At the same time, the original owner has confirmed that the property does not illegally occupy government land. If the new buyer finds that the property does illegally occupy government land, he has the right to cancel the transaction.
The original owner doubled the commission, prompting agents to vigorously promote sales
In addition, data indicate that the original owner of the above-mentioned property, in addition to significantly discounting the price, also promoted the property by “increasing commission” and paid the agent a commission of 2% of the property price after completing the transaction, involving approximately NT$1.2 million, which is higher than the 1% of the general second-hand transaction fee. The commission is high, which shows that the original owner is eager to sell the goods and leave the market.
Take a look at the Hung Shan Peninsula in Tai Tam for sale now (HOUSE730)
The original article was published on AM730
2023-12-19 08:00:59
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