Q & A with our experts

PUBLISHED : Wednesday, 10 October, 2012, 12:00am
UPDATED : Wednesday, 10 October, 2012, 3:11am

Q: I want to buy a flat which costs about HK$4.2 million. I have saved about HK$1 million so far and my initial thought was to enter the market when I save enough to make a down payment of 30 per cent. I don't want to pay for the mortgage insurance and feel safer if I am financially more capable of buying a flat. However, with the new round of quantitative measures, I am afraid that property prices will surge very quickly. Should I enter the market now? With HK$1 million saved, how much do I need to borrow if I want to buy a HK$4.2 million flat?

A: You have to prepare about HK$1.26 million to buy the flat. I think you should enter the market now. We saw the prices of two-bedroom flats rise sharply in recent weeks. The price of a HK$4.2 million flat would grow to more than HK$4.4 million in the coming six months. You will have to pay more for the flat and the cost would be higher than your expenditure for the second mortgage.

Patrick Chow is the head of research at Ricacorp Properties


Q: I want to buy a house in Yuen Long with a budget of HK$12 million for my own use and investment. I have visited several houses at Palm Springs in Yuen Long. I like the living environment. However, the housing estate is old. Do you think it is a good choice to buy a house there or a newer housing estate? Do you have any suggestions?

A: The prices of the new housing estates would be out of your budget. Palm Springs would be a better choice for you. Though the housing estate is old, the property price growth is in line with the other housing estates. It would be a good investment to buy a house at Palm Springs as the future supply of houses is tight. Most of the new supply will be apartments. That's why new villa projects have recorded strong sales in recent years.

Sammy Po is a director at Midland Realty


Q: I have a six-month-old son who will study in kindergarten next year. I want to buy a bigger flat for him. I have found there are more well-known schools in Island East or Kowloon Tong. Which district do you think is better? Which district has a cheaper property prices and higher upside potential?

A: Swire Properties will launch a new residential project next to The Floridian in Quarry Bay. It will cause the prices of nearby housing estates to rise. You could consider Taikoo Shing, Kornhill, Grand Promenade and The Orchards. The housing supply in the district is tight. In Kowloon Tong, you could consider the old housing estates next to Parc Oasis and the buildings at Prince Edward Road West.

Jeffrey Ng is senior executive director at Hong Kong Property