Laguna City prices defy market to hit records
Despite a weak property market, transaction prices for quality flats at Laguna City in Kowloon are hitting new record highs, agents say.
Ben Tsui Hsin-hung, manager of Ricacorp Properties' Laguna City branch, said his company had sold a 932 square foot top-floor second-phase unit with a roof-top patio last Sunday for $8.01 million, or about $8,600 per sq ft - a record for the development.
However, agents said that while high-level units with sea views could command high premiums, the average transaction price at Laguna City was about $7,300 per sq ft.
'The price range is $6,190 to $8,600 for last week's transactions,' Midland Realty's Laguna City branch regional sales manager John Yeung said.
He said there had been about 60 transactions in the first three weeks of this month, a 20 per cent increase over last month.
Mr Yeung said the current level of transactions equalled last year's September business, but transaction levels were down 50 to 60 per cent from June.
Prices at Laguna City have fallen about 2 per cent since last month, and 5 to 6 per cent since the heavy transaction period last June.
But prices have risen about 49 per cent from an average of $4,858 per sq ft in September of last year.
'Buyers aren't willing to go too high, and sellers aren't willing to drop too much,' Mr Tsui said, as the market was waiting for Chief Executive Tung Chee-hwa's policy speech on housing measures next month to give an indication of long-term housing prices.
Laguna City units are split into three broad size categories of about 600, 800 and 900 sq ft, with usable floor space of 80 per cent.
'Two-thirds of transactions now are for the 600 sq ft units,' he said.
Mr Tsui said the difference between asking prices and transaction prices was very slim, at $200 to $300 per sq ft.
'Owners will give 3 per cent discounts, but aren't willing to go less than 5 per cent of their asking price,' he said.
The Cheung Kong-built development has 8,072 units in total, of which there are about 800 to 1,000 units currently on the market.
The development was built in four phases, the entire development being between two and six years old.
Agents said rentals had not moved much over the summer, with rents being about $24 per sq ft, or about $20,000 per month for a 900 sq ft flat.
Some high-level flats with sea-views can command rents up to $38 per sq ft.
The development's building management charges 97 cents per sq ft in management fees, or about $900 for a 900 sq ft unit.
Laguna City residents have access to two residents' clubs, six tennis courts, two landscaped swimming pools, one roller-skating rink and two indoor recreational centres.
Mr Yeung said he was targeting 100 transactions in total this month, and was confident transaction levels would increase to 150 transactions by November.
