Recent trends reveal considerable price drops and multiple property sales within the Ma On Shan real estate market, amplifying discussions around the region's housing sector.
One notable transaction involves the Ma On Shan锦龙苑 (Kam Lung Court), where unit C08 on mid-level recently changed hands at 2.75 million HKD. Initially listed at around 2.88 million HKD, this two-bedroom unit, with a saleable area of 401 square feet, reflects the market's current state where buyers are capitalizing on reasonable prices. The previous owner had purchased the unit back in 2001 for 700,000 HKD, meaning they saw the value appreciate approximately 2.9 times over their 24-year ownership period. Upon selling, they positioned themselves with approximately 2.05 million HKD profit.
Meanwhile, the market shows no signs of stabilizing, with other properties facing significant decreases. The Ma On Shan Centre has been particularly affected, with Unit 1B being listed for 4.2 million HKD but selling for only 3.868 million HKD after one month on the market, resulting in the original owner facing a sustained loss of 1.132 million HKD, equaling 22.6% depreciation since they bought the property for 5 million HKD back in 2018.
Another example of the current downturn can be found at 新港城 (New Port City), where two-bedroom units are being sold at significant losses. A recent transaction executed at the P Block, unit P1, highlights this trend; it was initially offered for 4.88 million HKD but sold for just 4.73 million HKD. The new owner purchased it for 5.8 million HKD nearly seven years ago, indicating the owner faced losses of around 1.07 million HKD, or approximately 18.4% less than the original price.
The Ma On Shan property market’s downward shift has reached alarming heights, where reports indicate more than three transactions, each resulting in considerable losses. Currently, there's great concern as property prices are now dropping below the 4 million HKD threshold for the first time in nine years, showcasing the local market's susceptibility to broader economic trends.
Realtor Zhao Yongxin from Century 21 noted the long-term owners often face heavy losses when attempting to liquidate their properties, sometimes selling at rates far below acquisition costs. "The sentiment remains low, causing current owners to liquidate at extreme losses, we foresee this continuing if market conditions don’t shift soon," she explained. These continuing trends highlight the tenuous balance of real estate investments, particularly concerning older properties.
Overall, the Ma On Shan real estate market faces challenging times as sellers struggle with low buyer traffic and plummeting prices, illustrating the broader volatility within Hong Kong's housing sector.
With the market pressure expected to linger, potential buyers remain cautious but are eyeing the lower prices as new opportunities, with hopes of reviving the market once economic conditions improve.