The property market has continued to decline in recent years, and the property price index has fallen by around 23% from its peak in August 2021. In the dire situation of the property market, many large developers sold properties on huge discounts last year. Basically, “if the sales are not equal, no one will buy them.” However, Deng Shen heard that Le Feng Group, a small developer specializing in subdivisions of industrial buildings in the past, has been very brave recently, actually went against the market and launched a new single construction 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 of property prices.
When it comes to launching new single construction projects at high prices, Deng Shen is really “confused”, or some developers have realized that the whole society and economy is returning to normal, and they have even felt the benefits of “restoration and revitalization” 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 sadder for the 25,100 small property owners with negative equity in Hong Kong. This is linked 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 impressive real estate news this week has to 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 listing price for units 30. 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 historic peak in terms of property prices.
What is the concept of fixed price? Deng Shen simply recalled the new projects launched in the surrounding areas in recent years for comparison The Yulin single building project in Ho Man Tin launched in October 2023 also had 30 units in the first batch. The reduced average price per square foot was NT $20,936, reflecting the high price of Parc Elize, 27%.
For other similar property types 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 reduced 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, after 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 one building project on Sai Sai Street in East Mong Kok, has remained 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 Mong Kok East MTR Station. The walk takes about 6 to 8 minutes, and each one of which is one property building. Although overall property prices have fallen by more than 20%, the price of Parc Elize is still higher than the other two new projects launched at the height of property prices two and a half years ago. It takes a lot of effort to do that. 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 very 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 major developers. The transaction price of ONE SOHO on Shandong Street in the same area developed by Xinli is only NT$19,500 to NT$22,500 in recent months, so I’m not too hopeful about Elize PARK.
Are developers the first to see the benefits of “governance and regeneration”?
Elize PARK is the first new residential project in Hong Kong from small developer LeFeng Group Why is it so aggressively priced? The God of Light has been “confused”. If there is one reason for the aggressive opening, perhaps it “just happened” It is related to the announcement of the Chief Executive Li Jiachao on the morning before the opening of Elize price. PARKING 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 brave enough to ask Zhou Peixian, the founder and chairman of the Lok Feng Group, to ask the reason. Then he seriously explained to the Deng Shen that the real estate market in Yijia has become “polar” and many properties luxury and high quality properties on the market were sold at the top of their charts. , however, average quality properties are usually sold at affordable prices, so Elize PARK locates 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 many land sources, but I only have 52 units on my site. I will sell it as a piece of work art!”
Le Feng Chow Pei-yin “This is how you sell your art!”
Indeed, Ms Zhou said at the press conference earlier that she was very confident about the property. He believed that the asking price reflected the inherent advantages of the property and the quality of the view. He also described the first batch of pricing as “good value for money” and “Price 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 reality of the market. Elize PARK originally launched 30 units in the form of a price list, but 4 days later, on Friday night (2nd), it changed suddenly to propose a method to launch the units 30. Single unit, rare practice. Developer Zhonghua, after announcing the No. 1 price list, said it adjusted its sales strategy in response to market conditions, but is not brave enough to say whether this is “shrinking sand”.
Established ten years ago and initially specialized in “industrial building subdivisions”
Looking back at LOFTER Group’s past information, LOFTER was only established in 2012 with the English name LOFTER. He officially joined the ranks of developers first in 2016. At that time, he started buying industrial building properties, then renovating them to add value and then dismantling them.”Industrial building subdivision”. Projects are located in Kwai Chung, Lai Chi Kok, Kwun Tong, Tai Kok Tsui, etc. Each project is named after LOFTER. In the following years, the property market rose. This industrial building was renovated and then dismantled it many times, successfully making a LOAD of fortune..
After the success of the industrial building demolition and sale project, Lofeng further joined 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 others. projects launched in the city in the next few years. .
Elize Park, a new single building development on Sai Sai Street in Mongkok East.
Although society as a whole has become more stable in recent years, and most people’s livelihood economy and retail consumption have started to recover from the bottom, the stock and property markets that Hong Kong people have not loves them and cares about them can still bounce back, and they fall deeper and deeper! The fall in property prices is a predicted conclusion and has already accumulated around 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 historic high of 33,154 points.
The stock market and property market are flooded, with negative assets rising to 25,000
Furthermore, the Hong Kong Monetary Authority published figures last 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 swelled almost 1.3 times and hit a 19-year high since 25,375 cases in the third quarter of 2004.
In such a serious 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 because of 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 the “Uncle Bo Plan” by borrowing 80% to 90% of the price of a property. 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 isn’t really easy, it really can’t be ignored.
↓Clear water show flat, Unit A, 18th floor, Elize PARK↓
↓Room B display unit on the 18th floor of Parc Elize with decorations↓
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