The transaction for a one bedroom apartment in Leo Square and Xi'an in Hong Kong is 4.7 million yuan! The original owner lost 24%!

Zeng Wenhui, Senior Branch Manager of Zhongyuan Real Estate Olympic Station's Leo Fang Xiao'an, exclusively revealed that the branch has recently successfully facilitated a case in Leo Fang, Tai Kok Tsui The second-hand residential property in Xi'an was sold, and the original owner of the unit had been in charge of the property for about 6 years. Eventually, it was sold at a loss, and the property depreciated by more than 20%, becoming a typical case of semi new high-rise property owners "cutting their meat and leaving" in recent times.

It is understood that the specific unit involved in this transaction is Leo Fang The mid-level L room of Xi'an Building has a practical area of 255 square feet, adopting the classic one bedroom interval design and equipped with an open kitchen. The space layout is compact and practical, suitable for the living needs of single people or small families. From the perspective of living experience, the unit faces due east with unobstructed views of the park and swimming pool within the community. The daily lighting is abundant and the environment is quiet, providing a certain advantage in living comfort. It is worth mentioning that the unit was officially listed for sale in November last year, with an initial price of 4.85 million yuan. After multiple rounds of negotiations, the owner ultimately chose to make moderate concessions. Recently, it was successfully sold for 4.7 million yuan, equivalent to a usable area price of about 18431 yuan per square foot, with a cumulative concession of 150000 yuan from the selling price.

Behind the seemingly stable transaction, there is a significant loss that the original owner cannot avoid. Zeng Wenhui further disclosed that the original owner of the unit entered the Hong Kong real estate market during the high cycle in 2020, with a total purchase price of 6.19 million yuan, corresponding to a practical area transaction price of about 24275 yuan per square foot, which is a typical "high-level takeover". After selling for 4.7 million yuan this time, the original owner's book loss amounted to 1.49 million yuan. After accounting, the unit depreciated by 24.1% during the approximately 6-year holding period, which is equivalent to facing about 4% asset shrinkage every year of holding. The asset impairment pressure after "taking over" is significant.

According to publicly available information, the Leo Fong Hoi An project is located at 38 Fuk Chak Street, Tai Kok Tsui, Kowloon. It officially completed the occupation procedures in 2021 and is currently under 5 years old, belonging to the category of second tier properties with high market recognition. The overall plan of the project is to build 2 high-rise residential buildings, providing a total of 488 diversified units, covering various types of units such as one bedroom to three bedroom. The 255 square foot one bedroom unit sold this time is one of the main units targeted at the demand group of the project, with high transaction activity in the past. A senior analyst in the industry said that this time, Leo Fang The transaction case of Xi'an is not an isolated case, but a microcosm of the current common difficulties faced by high priced semi new building owners who entered the market around 2020. Although the overall second-hand trading market is active, the main demand is concentrated in mid to low priced properties with outstanding value for money. Some high priced semi new building owners who want to quickly cash out and exit often need to actively make price concessions in order to facilitate transactions. This phenomenon further highlights the "uneven distribution of hot and cold" in the current Hong Kong second-hand property market.