Second public housing flat fetches record price

PUBLISHED : Friday, 05 October, 2012, 12:00am
UPDATED : Friday, 05 October, 2012, 2:02am

Another public housing flat has sold for a record, underscoring the fact that the sharp rise in property prices has expanded from private housing to the public sector.

Transaction data from Ricacorp Properties showed the flat on the 26th floor of Chuk Yuen North Estate's Tung Yuen House in Wong Tai Sin sold for HK$2.85 million last month.

A 631-square-foot unit at Cheung On Estate in Tsing Yi sold for HK$2.85 million, or HK$4,517 per square foot in March.

Patrick Chow Moon-kit, the head of research at Ricacorp, said 42 second-hand public housing flats changed hands last month, 17 per cent more than a month earlier. Sales grew 19 per cent to HK$64.28 million last month.

"Prices of private housing and Home Ownership Scheme flats have continued to hit record highs in recent months, while the prices of public housing flats have remained comparatively low. This attracted first-time buyers who could not afford private housing, leading to public housing sales continuing to increase in the third quarter," Chow said.

Meanwhile, Nan Fung Sun Chuen in Quarry Bay is one of the private estates posting record-breaking transactions. A 474 sq ft flat on the 10th floor just sold for HK$4.45 million or HK$9,388 per square foot, a record high in terms of price per square foot for the estate.

The seller bought the flat for HK$2.94 million in August 2010, which means the price has surged 51 per cent in two years.

The government has increased land supply in order to cool the property market in recent years, leading to more flats being built.

Centaline Property Agency, quoting figures from the Buildings Department, said construction started on 14,573 private housing flats in the first eight months of this year, compared with 14,106 flats for the whole of last year.