The property market has continued to decline in recent years, and the property price index has fallen by approximately 23% from its high in August 2021. In the severe situation of the property market, many large developers sold properties at huge discounts last year. Basically, “if the sales are not even, no one will buy them.” However, Deng Shen heard that Le Feng Group, a small developer that specializes in industrial building subdivisions in the past, has been very brave recently. It actually bucked the market and launched a new single-building project in Mong Kok East, Elize PARK, at a high price. The average discounted price per square foot of the first batch was as high as about 2.66. Ten thousand yuan, which is about 20% to 30% more expensive than the new properties launched in the surrounding area two and a half years ago during the peak period of property prices.
Regarding the launch of new single-building projects at high prices, Deng Shen is really “baffled”, or some developers have realized that the entire society and economy are returning to normal, and they have even felt the benefits of “restoring and revitalizing” Well, Zhou Pei Xianzhong, founder and chairman of Lefeng Group, told the dungeon that Elize PARK “will be sold like this as a work of art!” However, the gods have not yet felt the “rest and prosperity”, and they are even more sad for the 25,100 small property owners with negative equity in Hong Kong. This is related to the fact that they have borrowed property prices through the “Lam Plan” and “Uncle Bo Plan” in recent years. 80% to 90% enter the market.
The most eye-catching real estate news this week must be Elize PARK, a new single-building project on Sai Sai Street in Mongkok East, owned by Lok Fung Group. This past Tuesday (30th), this project announced the first batch of price lists for 30 units. Surprisingly, the first batch of The average discounted price per square foot is as high as NT$26,688. A room with a usable area of 244 square feet on the ground floor will cost 5.998 million yuan at the lowest discount.
27% more expensive than new developments in Ho Man Tin. Pricing is like staying at the historical peak of property prices.
What is the concept of a fixed price? Deng Shen simply recalled the new projects launched in the surrounding areas in recent years for comparison. The single-building project Yulin in Ho Man Tin launched in October 2023 also had 30 units in the first batch. The discounted average price per square foot was NT$20,936, reflecting the high price of Elize PARK. 27%.
As for other similar types of properties located nearby, we have to go back to 2021, but it is worth noting that August 2021 will be the historical peak of Hong Kong property prices! Ho Man Tin Fang Fei was launched in July 2021. The first batch of 30 units has a discounted average price per square foot of about 26,139 yuan, which is similar to Elize PARK. The VAU Residence, launched a month earlier in June 2021, has a first batch of 50 units. The average price after discount is NT$24,519, and Elize PARK is 8.8% more expensive.
After looking at the above figures, what I want to say is that today’s asking price of Elize PARK, a new single-building project on Sai Sai Street in East Mong Kok, can actually be said to have stayed in the time and space of the peak period of property prices, because whether it is Elize PARK, Fang Fei Or VAU Residence, the location is actually very close to the MTR Mong Kok East Station. The walk takes about 6 to 8 minutes, and all of them are single-building properties. Even though the overall property prices have dropped by more than 20%, the price of Elize PARK is still higher than the other two new projects launched at the peak of property prices two and a half years ago. It really takes a lot of effort to see how many real estate agents want to sell this project. , the djinn can only send blessings for real estate sales!
The new ONE SOHO properties in the same area are priced from 19,500 to 22,500 per square foot.
Zhong Tongdeng, a senior real estate agent in the area, said that it is really difficult to compete with this asking price. The current transaction price per square foot of other new projects in the same area is much lower. For example, the units were already occupied last year and were developed by large developers. The transaction price of ONE SOHO on Shandong Street in the same district developed by Xinli has only been NT$19,500 to NT$22,500 in recent months, so I am not too optimistic about Elize PARK.
Are developers the first to see the benefits of “governing and revitalizing”?
Elize PARK is the first new residential project in Hong Kong by the small developer LeFeng Group. Why is it so aggressive in pricing? The God of Light has been “puzzling”. If there is one reason for the aggressive opening, it may be that “it just happened”. It is related to the announcement by Chief Executive Li Jiachao on the morning before the price of Elize PARK on Tuesday. Launch a public consultation on local legislation on Article 23 of the Basic Law, or developers may be the first to feel the benefits of “governance and prosperity”!
The Deng Shen was bold enough to ask Zhou Peixian, the founder and chairman of the Lok Feng Group, to ask the reason. He then explained to the Deng Shen seriously that the real estate market in Yijia had become “polarized”, and many luxury and high-quality properties in the market had been sold at their peak. , however, properties with average quality are usually sold at affordable prices, so Elize PARK positions high-quality properties and is confident in the first batch of asking prices! However, last year many large developers were selling properties at bargain prices. Chow Pei-hsien said, “They have a lot of land sources, but I only have 52 units on my site. I will sell it like a work of art!”
Le Feng Chow Pei-yin “This is how you sell your art!”
In fact, Ms. Zhou said at the earlier press conference that she was very confident about the property. She believed that the asking price reflected the property’s inherent advantages and the quality of the view. She also described the first batch of pricing as “good value for money” and “The price of choice for the regional appreciation king”, I feel really confident when I look at it.
However, we still have confidence, and we have to face the market reality. Elize PARK originally launched 30 units in the form of a price list, but 4 days later, on the night of Friday (2nd), it suddenly switched to a bidding method to launch the 30 units. Single unit, rare practice. The developer Zhonghua said that after announcing the No. 1 price list, he adjusted his sales strategy in response to market conditions, but he is not brave enough to say whether this is a “shrinking sand”.
Established ten years ago and initially specialized in “industrial building subdivisions”
Looking back at the past information of LOFTER Group, LOFTER was only established in 2012 with the English name LOFTER. It first officially joined the ranks of developers in 2016. At that time, it began to buy industrial building properties, then renovated them to add value and then dismantled them. “Industrial building subdivision”. Projects are located in Kwai Chung, Lai Chi Kok, Kwun Tong, Tai Kok Tsui, etc. All projects are named after LOFTER. In the following years, the property market rose. This industrial building was renovated and then dismantled many times, successfully making LOFTER a fortune. .
After the success of the demolition and sale of industrial buildings project, Lofeng further entered into the old building acquisition project and acquired a number of sites in urban areas, including Tai Kok Tsui, Mong Kok, Prince Edward and Jordan, so there will be other projects launched in the city in the next few years. .
Elize PARK, a new single-building development on Sai Sai Street in Mong Kok East.
Although the entire society has become more stable in recent years, and most of the people’s livelihood economy and retail consumption have begun to recover from the bottom, the stock and property markets that Hong Kong people love and are most concerned about are still unable to rebound, and they are falling deeper and deeper! The decline in property prices is a foregone conclusion and has already accumulated about 23% from the high; the stock market has declined even more, with the Hang Seng Index returning to 15,000 points, a cumulative drop of more than 50% from the historical high of 33,154 points.
The stock market and property market are flooded, with negative assets rising to 25,000
Moreover, the Hong Kong Monetary Authority announced figures this past Wednesday (January 31) that the number of residential mortgage loans with negative equity increased from 11,123 at the end of the third quarter of 2023 to 25,163 at the end of the fourth quarter of 2023. It surged nearly 1.3 times and hit a 19-year high since 25,375 cases in the third quarter of 2004.
In such a severe situation in the property market, Deng Shen has never been able to figure out what practical factors would make this new developer so aggressive. This is all due to fruitful sentences, or developers feel the benefits brought by “governance and prosperity”, but in recent years, many Hong Kong companies have entered the market through “Lam Plan” and “Uncle Bo Plan” by borrowing 80% to 90% of the property price. The vast majority of citizens have already fallen into negative equity, or many experts in the market say, “As long as you pay on time, there is no need to panic and call the bank.” However, the psychological pressure of falling property prices and falling into negative equity is actually not easy. , it really cannot be ignored.
↓Clear water show flat, Unit A, 18th floor, Elize PARK↓
↓Demonstration unit of Room B on the 18th floor of Elize PARK with decoration↓
2024-02-03 00:00:10
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