The sluggish secondary property market has led to a surge in foreclosure sales. Recently, a two-bedroom unit at Park Yoho, Yuen Long, was sold as a foreclosure for HK$5.3 million, marking a 26% drop in value over eight years. The price per square foot fell below HK$10,000.
According to an agent from Midland Realty, the transaction involved a high-floor, two-bedroom unit with an enclosed kitchen in Block 10B, Phase 1A of Park Yoho. The unit offers a saleable area of 583 square feet with garden views. It was sold for HK$5.3 million, translating to HK$9,091 per square foot.
The buyer, a local resident, had been closely monitoring the Hong Kong property market. With interest rates easing, they decided to purchase the property for self-use after viewing multiple units. The buyer found this foreclosure unit particularly appealing due to its high-floor location, high ceilings, and ample natural light.
Records show that the original owner purchased the unit in 2016 for HK$7.241 million. However, between 2016 and 2018, they took out second and third mortgages from the same finance company, borrowing a total of HK$3 million. By June 2024, the property was foreclosed.
Over the past eight years, the unit’s value dropped by HK$1.941 million, or 26.8%, from its original purchase price. According to Midland Realty, as of this month, the Park Yoho estate has recorded four transactions, with approximately 340 units currently listed for sale, with prices starting at around HK$3 million.
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