Hello everyone I am Mickey Every time there is a new launch the secondary market in the same area usually feels the pressure Especially as the new developments are being launched at low prices recently Today we are in Ho Man Tin to see how the secondary market is under the impact of The Long Yat Peak how the secondary market situation is We will visit Ho Tin and ONE HOMANTIN their listings One of them is from a seller under financial distress After watching the video you can leave comments below to express your opinions You might win a coffee voucher If you haven’t subscribed yet please subscribe to our channel soon and click the bell icon next to it Mid-last month developed in collaboration by Eagle and MTR The Long Yat Peak on top of Ho Man Tin Station launched its first batch of units at an average discounted square foot price of nearly HK$20,000 launching the first batch of units It’s the cheapest new development in the area in over 8 years and compared to the adjacent Tin Chu at about 8 years old The recent secondary average transaction price per square foot is about HK$25,800 over 22% lower Compared to those a bit further from the MTR station but still under 10 years old in the semi-new developments in the area Their previous secondary construction costs ranged from about HK$17,000 to about HK$20,000 This one price immediately reduced Ho Man Tin area's secondary viewing volume and inquiries by about 20% and last month's transactions also significantly decreased like Ho Tin and ONE HOMANTIN agents pointed out each only had one transaction There were also cases of considerable losses For example, that one at ONE HOMANTIN The original owner left the market with a book loss of nearly HK$9.6 million The unit is from Block 7 A special rooftop unit with a terrace with a usable area of 795 square feet Three bedrooms including a maid's quarters The original owner in 2019 purchased the unit at over HK$25.79 million as first-hand There was an internal transfer previously Recently changed hands for 16.2 million HKD Price per square foot about 20,000 HKD The unit has depreciated about 37% over 5 years Depreciated by about 37% ONE HOMANTIN is located on Sheung Foo Street Not far from Long Yin Peak That is, near Homantin Station About a 10 to 15 minute walk There's no canopy along the way Exposed to sun and rain However, compared to the adjacent Tin Chiu The floor plans and layout of ONE HOMANTIN Are more similar to Long Yin Peak ONE HOMANTIN was developed by Henderson Land Development Occupied since 2017 About 7 years old Offering a total of 561 units With usable areas ranging from 350 to 1564 square feet From one-bedroom to four-bedroom units Mainly two-bedroom and three-bedroom units are featured Making up about 80% of the units Block 6 of the property Is arranged in a 'C' shape As all are only 17 storeys high Most units Focus on the nearby buildings as the primary view Some high-floor units may have views through the nearby buildings Overlooking the Homantin cityscape Visiting the property for sale Located on one side of Block 2 There are 6 units per floor here Sharing two elevators We are looking at a mid-level Unit A With a usable area of 698 square feet It's a three-bedroom suite layout The owner put it on the market mid-last year Initially priced at 14.5 million HKD In January this year The asking price was reduced by nearly 14% To 12.5 million HKD Price per square foot about 17.9 thousand HKD However, coincidentally, the day after we shot this The unit was successfully sold With a total discount of 8% Sold for 11.5 million HKD Price per square foot about 16.4 thousand HKD Let's take a look inside the house first And then analyze the price later Upon entering There is a rather long entrance hallway first. It's about 2.7 meters long and 1.2 meters wide. Just counting this space, it's already nearly 35 square feet. Close to 5% of the unit area. If you don't want to waste space, you can place a slim shoe cabinet. You can also add some hooks on the wall for hanging outerwear. Basically, all units in this estate have a standard kitchen. This long corridor is designed to accommodate the kitchen layout. Let's go in and see. The kitchen is irregularly shaped. Kitchen cabinets have to be custom built. But seeing that there is an L-shaped worktop, the meal preparation space is quite sufficient. The original owner bought this unit first-hand and generally retained the original design, though it has always been rented out. But overall, it's well-maintained. However, the original storage space mainly focuses on the lower cabinets and isn't particularly abundant. So additional cabinets and shelves were added to increase storage capacity. Appliances provided by the developer are retained, mostly from the German brand Miele, including microwave ovens, steam ovens, refrigerators, and washer dryers, etc. There's also a Gaggenau wine cabinet. What I find lacking is the refrigerator placed behind the kitchen door. You have to close the kitchen door to access items, which can be inconvenient. Moving out to the living and dining rooms, the space is long and straight. 5.75 meters long, and 2.9 meters wide. It's about 180 square feet. There are no window sills, making it square and practical. It's easy to place furniture, plus the ceiling is high at 3.15 meters, which is 10 feet, creating a good sense of space. You can see that the original owner in the dining room built a set of floor-to-ceiling storage cabinets. Even with a four-person dining table set up it doesn't feel cramped This unit is located on a middle floor primarily featuring views of other buildings However, it faces Pak Ching Path and there are trees planted on both sides I suggest placing the sofa here Although there is a balcony door here when you sit down you can enjoy the view of the trees The unit faces southwest but since it's blocked by the Metropolitan University even though it was the afternoon on the day of filming there wasn't severe sunlight exposure The balcony is 22 square feet separated by sliding glass doors Since there are no windows adjacent if ventilation is needed you would need to open the balcony door If you want to avoid reflecting noise indoors you can open it partially keeping the glass door at a certain angle to bounce the noise outside Both the room and bathroom are accessed from the corridor Let's start with the room near the hall which is about 46 square feet Here, a series of cabinets and a desk have been built presumably previously used as a study Because the area is small if it were a typical bedroom layout I would place a single bed by the window and a wardrobe with a desk on the corner wall All three bedrooms face the same direction as the living room Fortunately, the nearby buildings are not very tall so there is ample natural light The area of this bedroom is almost the same as the one near the hall However, if arranged like this room the cabinets would block part of the window Because the window in this bedroom is larger than in the hall-near room spanning the width of the bedroom so technically, the lighting should be better If you don't want to block the window I would recommend furniture placement similar to what I mentioned in the hall-near room At the end of the hallway is the master suite Although a recess has been set aside for a wardrobe but here near the ceiling an extra storage cabinet has been added So when you come in, there's a slight feeling of oppression. Not counting the corridor and wardrobe space, it's about 79 square feet. But if you want more walking space, it's not recommended to have a bed accessible from three sides. There will be a window here, but it doesn't help this bedroom achieve effective cross ventilation, because there are no windows that can be opened on this side. The bathroom retains the original design, which is not small. Includes a bathtub, and there are cabinets above and below the sink for storage. And it has a clear toilet, not just a single suite. The bathroom next door also has a window for ventilation. That’s quite good. However, this side has a standing tank and less storage space. But the area is medium-sized, not very small. The original owner bought the unit in 2016 for 14.56 million HKD as a first-hand purchase. It was already listed at a loss then, now sold for 11.5 million HKD. The owner faces a loss of about 3.06 million HKD. Held for 8 years, the unit depreciated by about 21%. It's underperforming compared to the approximately 7% drop in the larger market for the same period. However, considering the transaction price per square foot was about 16,400 HKD, it's relatively close to the recent resale price per square foot. Referencing our 28Hse website, excluding last month's special unit transactions, mid-March, a unit in Tower 5 on a middle floor with a saleable area of 759 square feet sold for 13.5 million HKD. The price per square foot was about 17,800 HKD, which is nearly 8% higher than the unit we just looked at. But keep in mind, besides the fact that Lang Yin Fong had not been priced at the time, this unit included an extra workspace and faced southeast, overlooking Ho Man Tin Square, and had a view of the inner garden swimming pool, which would affect the price. In the past 3 months, a total of 6 transactions were recorded. If the month with the most transactions, After the "de-spicy" policy, 4 transactions were recorded. Excluding those among them, since one was a transaction of a unique unit with a rooftop, the average price per square foot was about HK$16,700. Currently, ONE HOMANTIN has about 80 listings. However, the agent indicates that only about 10 are priced close to market value. Few of these have been finalized. The asking price for one-bedroom units starts from HK$7.6 million, two-bedroom units around HK$9 million, and three-bedroom units from HK$12.8 million. As for rental units, there are about 20 available, with rents starting from HK$24,000. Rent per square foot ranges from HK$44 to HK$54. The clubhouse of ONE HOMANTIN is mainly located at the base and basement of Tower 1, spanning three floors and approximately 20,000 square feet, featuring indoor and outdoor pools, a gym, a yoga room, and various sports and wellness facilities. The management fee is about HK$5 per square foot. Additionally, there are 133 private parking spaces, with an average of about 4 households per space. If buying from the developer, it costs about HK$3 million each. Monthly rents are approximately HK$6,000 to HK$7,000. Behind the estate, there is a public car park. For those who do not drive, although the estate is farther from the MTR station, there are numerous bus and minibus routes available right outside the main entrance and nearby. Opposite the estate, there's Homantin Plaza and a street market, although with limited shop variety and numbers, they meet the basic needs of the residents, including fresh ingredients. For a wider selection, one would need to drive to the nearest MOKO in Mong Kok and other large shopping malls like Langham Place. The second listing we visited, just a street away, is Ho Tin, so the transport facilities are quite similar. However, Ho Tin is significantly larger, comprising 9 blocks, offering a total of 1429 units, making it the largest private residential estate in the area. Hao Ting was developed by Kinley similar to ONE HOMANTIN both were completed in 2017 and the unit types and areas are also very similar offering practical areas from 399 to 1487 square feet ranging from one-bedroom to four-bedroom units two-bedroom and three-bedroom also make up over eighty percent of the total supply However, they are ultimately separated by a street and the land shape is different each building is arranged in an arc from north to south and the buildings are slightly taller ranging from 21 to 23 stories therefore, in terms of the view, it is relatively more open than ONE HOMANTIN from the 2nd to the 10th blocks units facing northeast or southeast the lower floors overlook the reservoir park in front and the lush greenery while the upper floors have distant views of To Kwa Wan and even the sea views around Kai Tak and for block 12 facing Sheung Shing Street higher floors can overlook the cityscape of Kowloon Tong However, units facing south and west all overlook the public housing estate Ho Man Tin Estate As the largest private residential estate in the area, the clubhouse is naturally large covering over 35,000 square feet offering more than 30 recreational facilities including a 50-meter outdoor swimming pool a 25-meter indoor temperature-controlled pool a gym and a children's play area a music room and massage rooms, etc The management fee is about HK$4.8 per square foot Regarding parking, Hao Ting offers 402 parking spaces and the transaction prices with the developer are around HK$3.8 million monthly rents are also between HK$6000 to HK$7000 However, at Hao Ting, finding a unit with around 600 square feet there aren't three bedrooms Here, standard three-bedroom units start from 865 square feet so the customer base differs slightly from ONE HOMANTIN Hao Ting's units around 600 square feet have options of two bedrooms or two and a half bedrooms including a study The units we are looking at this time belong to the latter type coming from block 7 where there are 7 units per floor Something special is that rooms A to D share two elevators while rooms E to G share another two elevators However, they are only separated by a smoke door so residents can go to the other side Visiting the listing is a high-floor unit C with a salable area of 679 square feet It is a premium unit The seller is currently asking for 13 million HKD which is about 19,100 HKD per square foot Upon entering, you first see a vestibule Notice it’s not small Quite spacious However, the entrance door already occupies a certain position consequently it’s harder to place a shoe cabinet But compared to the unit in ONE HOMANTIN here, the length and width are only 1.45 meters each which is about 22 square feet It feels less like a waste of space This area will be part of the kitchen Shaped longitudinally equipped with an L-shaped countertop You can see it holds quite a bit of stuff Since the estate is relatively new within 10 years so it also retains the original delivery standards with cabinets for storage both above and below Relatively more practical The developer-supplied appliances are also mostly from Miele Like the refrigerator, microwave and washer-dryer combination Ovens and wine cabinets come with three bedrooms or more Let’s take a look at the living and dining room It’s a T-shaped hall Layout is clear Here it’s 3 meters wide 5.2 meters long totalling approximately 168 square feet You see some furniture left behind The dining room can fit a six-person dining table However, if it were me I’d prefer a smaller dining table add another storage cabinet for storing shoes, etc. The dining room has a window Which can allow for cross ventilation with the living room window No need to open the balcony door for ventilation every time. I think this aspect is better. The distance between the sofa and the TV is just right. The ceiling height is 3.15 meters. Being on a higher floor, there are no other buildings blocking the view. Overall, it feels unoppressive. The unit faces northwest and offers a view of the nearby cityscape. It's quite open. So, the natural light is good. The balcony is about 22 square feet. Using sliding doors, saves space both indoors and outdoors. Bedroom and bathroom are traditionally accessed from the corridor. Let's first look at the room near the hall. It's actually half a room that can be used as a study or maid's room. The room is 1.4 meters wide, nearly 38 square feet. It can fit a single bed and a set of wardrobes. But there isn't much space to move around. This room and the two bedrooms all face the same direction as the living room. Across is the bathroom, which is an open type, equipped with a bathtub. It also retains the original design. The area is moderate, nothing special. There is enough storage space. Let's turn to the middle room to see. It's nicely square. About 59 square feet. Seeing this bedroom, with some basic furniture placed, you can roughly imagine how to arrange it later. By the window side, there's a single bed placed, and on this side, a wardrobe. There's also space for a desk in the middle. Most furniture is movable. The buyer only needs simple rearrangement, adding some furniture suitable for themselves, to be ready to move in. Let's take a look at the master bedroom There are recesses for the wardrobes Excluding that area and the corridor There's about 93 square feet With room to get out of bed on three sides Also possible to add another dressing table Additionally, this area also connects to A 16-square-foot workstation The original owner purchased the unit in 2017 For about 17.84 million Hong Kong dollars firsthand Looking back at the records The original owner entered the market Through what's known as the "Breathing Plan" Mortgage plan Using the financial institution designated by the developer at the time Offering the "1+2 finance plan" Granting a high-ratio mortgage The first mortgage involved up to 70% of the property price The second mortgage was for up to 20% of the property price Total loan amount could be up to 80% of the net property price The first three years were interest-only payments The unit has now become a bank-owned property Listed at 13 million Hong Kong dollars Which is about 4.85 million less than the purchase price Or more than 27% But looking at recent transactions of similar units The bank-owned property's asking price is quite aggressive Unit F in Tower 2, on a low floor With a usable area of 595 square feet Changed hands for 9.78 million Hong Kong dollars With a price per square foot of about 16,400 Hong Kong dollars The bank's asking price is over 16% higher However, note That this transaction unit is on a low floor Not as open as the bank-owned unit And it is a two-bedroom unit Lacking a study room Let's look at the bank valuations All four banks have appraised below Ranging from 11.47 million to 12.14 million Hong Kong dollars Lower than the bank-owned asking price By about 6% to 11% Reflecting that the bank has not made substantial concessions However, losses are inevitable Over the past three months Out of 11 transactions Most had to bear losses Looking back at the records Since the fourth quarter of 2022 There have been consecutive cases of secondary market losses The loss reached nearly 40% Taking our type as an example Because in 2017 and 2018 It generally exceeded 20 million HKD The price per square foot could range from about 25,000 HKD to over 30,000 HKD per square foot It has come down a lot now Following the general market and demand There are many new developments in the vicinity Including new launches in Kai Tak or West Kowloon The new developments have also seen price reductions All in response to the market Owners need to adjust In fact, since the second half of 2022 Hong Kong entered a cycle of interest rate hikes Leading to a wave of price cuts and losses in the secondary market Apart from Ho Tung ONE HOMANTIN also experienced the same situation The loss also reached 30% Although these are owners' sales compared to buying typical secondary properties there is not much difference in terms of mortgage approval conditions As long as the buyer has the capability to make payments they can still obtain a high-ratio mortgage Assuming an asking price of 13 million HKD by the owner borrowing up to 80% mortgage the monthly repayment would be about 50,000 HKD the monthly income requirement would be around 100,000 HKD However, it should be noted that after signing the provisional agreement the owner's sales typically require a transaction within 30 days and at most within 45 days to be completed So buyers planning to apply for high-ratio mortgages need to find banks that approve mortgages quickly or prepare mortgage-related documents in advance Buyers should inquire with the bank about the original owner’s debts before purchasing the unit besides the property price if there are any other fees involved Also, attention should be paid to the property deeds to check with the bank whether they are complete and because banks will eliminate all risks the buyer must be careful sometimes some older properties may affect the future mortgage assumption Compared to ONE HOMANTIN Hou Tin has been more active in transactions The average transaction price per square foot from February to April was about HK$17,100 Currently, the estate has about 180 listings but only about 20 of them are really priced at market value Only about 10 are really ready for transaction without leases Only about 10 This also affects the volume of transactions If the current entry fee for a one-bedroom is about HK$7.2 million two-bedroom is about HK$9 million If we look at the two-and-a-half bedroom now it is about HK$12 million to HK$13 million for over 900 square feet The entry fee is then about HK$17 million As for rental listings Hou Tin currently has about 30 rentals start from HK$22,000 per square foot rental ranges from HK$46 to HK$62 Assuming the showcased silver owner’s plate for reference this type of two-and-a-half bedroom unit can reach HK$58 per square foot Thus estimating the monthly rent for the silver owner’s plate at HK$39,382 before deducting management fees The rental yield is about 3.6% higher than the level in Kowloon area for small to medium-sized units In fact whether it is Hou Tin or ONE HOMANTIN both rental and sale listings are quite popular with family customers as this area is within a prestigious school network Primary schools belong to the 34 School Network Secondary schools are in the Kowloon City District The area includes Chan Sui Ki (La Salle) Primary School Heep Yunn School Primary Division La Salle College Hong Kong Pui Ching Middle School After viewing these two listings in this episode what do you all think Feel free to leave us a comment below You might get a chance to win a coffee voucher Lastly, if you like this video remember to Like and Share
