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Bargain hunters interest in falling prices in
Bel-Air units
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Nov 20th 2008 |
Falling prices fan interest in Bel-Air units
Pok Fu Lam development offers opportunities
for end-users and investors, say estate
agents
With home prices in the secondary market
down more than 40 per cent from peak levels
reached in the first quarter of this year -
or back to 2005 levels - the Bel-Air
development in Pok Fu Lam may now offer
value to end-users and investors, say estate
agents.
From an investor perspective, they point
out, falling prices have lifted rental
yields to between 4 and 5 per cent, compared
with 3 to 4 per cent when prices were at
their peak.
"The extent of the price decline has been
greater than in many other districts, so
many potential buyers who live in other
locations have come here to view flats over
the past few weekends," said Cathy Chiu Pui-ching,
a manager at Ricacorp Properties.
As part of the long-term Cyberport
development, Bel-Air consists of six phases,
all of which are now completed.
In the past two weeks, deals have shown a
rebound.
"There were nine transactions in the
secondary market in Bel Air last month and
we have already seen 10 deals clinched in
the first 17 days of this month," Ms Chiu
said. "The buyers have been attracted by the
decline in home prices in the development."
Transacted prices fell to a low of HK$6,900
per square foot this month, the lowest since
2005, and ranged upwards to about HK$10,000
per square foot.
Phoebe Leung Yuk-ching, a manager at Midland
Realty's Bel-Air district office, said
transacted rentals fell slightly to HK$32
per square foot from last month's HK$34 per
square foot.
Supply of rental units increased with the
completion of the 709-unit Phase 6
development, she said.
If falling home prices, rising job cuts and
declining economic activity have not shaken
your view of the market when it comes to
buying a home, a Bel-Air address may be for
you.
Flat buyers are being spoiled for choice in
the present market conditions, with prices
on the retreat and many owners willing to
negotiate in order to sell their units. To
help readers in this fluid and rapidly
changing marketplace, Property this week
launches the regular "Hot Spots" column,
which aims to highlight some of the deals on
offer that may be used as a benchmark in
their search for value.
Source: South
China Morning Post |
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