pls. don't sell your flats at a cheaper price, you cannot buy the same one later

[A sir]

 
quite strange, all mass media saying the property market situation goes worse and worse.

However I got calls from various agencies saying someone wants to buy my flat recently, of course the price is lower than the market price.

I wonder if the real situation is that worse than what the mass media said.

Therefore to remind all sellers here, pls. don't sell your flats at a cheaper price, you cannot buy the same one later, you will be regret if doing so.

[oldbill]

??

sell flat today, price drops 20%, buy another flat, makes sense to me

[Poppet]

Prices have dropped already according to the HSBC website only in CC though CS still seems to be the same

[DrBubb]

Banks have raised rates by about 50 bp. (or by about 20%) for new loans.
But old loans are uneffected- still at Prime less 2.75% or whatever.

I think this will lead to a stall in the market.

Buyers will want to pay maybe 10% less, given that a 20% rise in rates can mean maybe a
10% increase in the monthly mortgage payment.  Most sellers, who have the flats rented, maybe be content
to wait, since their rental income may be covering their loan payments.

Nevertheless there are some Sellers who MUST sell, for whatever reason (I heard there are quite
a few who bought at LBD and will need to make various payments.)  Those forced sellers may find
it necessary to take lower prices- at least and until confidence is restored in the market.

BTW, there is talk of the US Federal Reserve cutting rates again this month by 25-50bp.
It will be interesting to see if that happens, and if HK banks pass the savings on to their "new"
borrowers.

Personally, I am eager to see Libor rates to come down, so the banks can start lending to each
other again, and the HK banks will be facing less funding pressure.  My fingers are crossed for this. 
But I am realistic, and can see that we may need to see some positive impact from the Bank Rescue
Bill first.

(Anyone have link to current US Libor, and Hibor?)*

BTW, for those who want to sell, remember that the agents are desperate for business.  If they do not hit their sales targets, then they will lose their jobs.  They know that they can easily find buyers only at lower prices, so they are looking for the desperate sellers.  Their ideal situation, is if they can get two Sellers to cut their asking prices, and then play one off against another.  So if an agent calls you, and tells you he has a buyer, ask him, "Well what is the firm bid?"  and "What else are you showing him?" I think you will find that most of these calls are just a desperate effort to shake out some cheap offers, so they can then go and try to flog your flat.  This tactic should be treated with the disrespect that it deserves.

===

Hibor - found this, at 30 sept.: http://iportal.infocastfn.com/yicko_asp/BankRate/Hibor.asp?LangId=1
Period Rate(%)
1 Day 1.75
1 Week 3.75
1 Month 4.32
2 Months N/A
3 Months 3.68
6 Months 3.50

You can see why banks are not keen to lend at below 3.00%.
Maybe it is okay for "older" loans supported by retail deposits

[A sir]

 
yeah, these days the market situation seems very fluctuated, highly suggest to lease the flat instead of selling it cheaper

[DrBubb]

RATE CHART...

found this - looks worse than i expected- a doubling of rates in 2-3 weeks!:

HIBOR
: LINK

The good news is that it has run up quickly to a key resistance level (near 4%), without the banks
passing the rise to their "old" customers.  I reckon the big HK banks are thinking this jump in rates
will prove to be a temporary thing. Lets hope the bill passes, and global Libor rates ease back soon.
Chartwise, a fall back to 2% or lower looks possible, especially if the baiulout works, and the Fed cuts
rates.  Reinflation in China is possible too- there are rumors measures will be taken next week.

While I can understand the fear - and the chart above depicts it well - a panic sale in the next few days may just be a good way to pass a bargain into the hands of the buyer.  But you cannot blame them for being opportunistic, especially those shocked by the rental rises over the last year or so.

(more on GEI)

[TungChungAlien]

quite strange, all mass media saying the property market situation goes worse and worse.

However I got calls from various agencies saying someone wants to buy my flat recently, of course the price is lower than the market price.

I wonder if the real situation is that worse than what the mass media said.

Therefore to remind all sellers here, pls. don't sell your flats at a cheaper price, you cannot buy the same one later, you will be regret if doing so.

Hi A sir,

So, the price is really dropping down and you are in PANIC. You are requesting the other owners not to sell in cheaper price. Thus helps the market to keep alive and hold your property value not let down. Hence you started this thread. Readers could see your panic eye from your thread subject.

[kent]

Buy low, sell high.  How do you know you bought high?  When there are no others are willing to buy after you, you bought high.  When there is an anemic market like right now, there is a chance that prices will drop at anytime. 

If prices don't fall because no one is selling, there is an incentive to cheat and sell.  The last one to sell will be holding onto the hot potato.

You are so smart... but you then are a bastard too  jk.  It's a free market, just like a gambling table, do whatever makes sense to you.  No one else will shore up your loss cuz you were playing a friendly game.  Just the truth.

[JEFF LAM YUET]

for owners, lucky TC has strong rental support so price is "relatively" stable compared to elsewhere, yes price dropped a bit currently too.

I am one of those who "don't sell your flats at a cheaper price", and I feel some agents call us and pretend to have buyers, but actually they test our price only, cos some agencies have ordered their staff not just to sell properties, but also check properties.

As a long-term investor with my flat rented out, I am still confident on market in long term, history in the UK told us estate price up 10% PA in average for 1000 years. It fights inflaction with property price and the rent is an income, perfect for retirement one day, hehe   

[JEFF LAM YUET]

sure my friend, stock is always better, you are very right. property is another option that has about 15% total return with about 10% capital gain and 5% rental return, the ideal way is to invest into different sectors, both stock and property, hehe 

TC is a good location for property investment cos of stable rental return and demand, but when the overall market really get down, while many owners decide not to sell but rent out their properties with the increased supply, rental will still get affected one day.

yes you are very right, the relatively lack of liquidity and transaction costs in property discourage people from selling in soft market, I am certianly one of them, haha

[JEFF LAM YUET]

oh yes, no matter the price up or down, commission still counts. just nowadays still too many agents than transactions, for those with good resdient network will be the winners. haha

[JEFF LAM YUET]

in the shopping centre, I am afraid they are really just offices to keep agents inside instead of using it as shops.

[JEFF LAM YUET]

But why two offices?  It seems a little too much.

it reflects to the staff number they have I guess.

[JEFF LAM YUET]

I think a small office can pack only 10-15 staff at max, and yes agency office is extremely expensive, they pay 100-200% more expensive in rent to the owner compared to normal shops. It is common for landlord to charge double rent to agency. Last month there are about 80 transactions in TC, if they get 1.5% in total per transaction and if the average value is 2.2m per unit, that is total revenue of $2,700,000 about 90 rental leases that in average 0.75 month rent commission, if average rent is $10000, that is total revenue of  $600000. so last month's total commission was about $3,600,000. enough to pay rents, but these 2 months are poor season for agency, so the peak season last year and Jan/Feb this year they had about 200 transactions and 150 rental leases. more than double.

[JEFF LAM YUET]

 they need to do paperwork too so each agent should have a very small desk in an office too. the number just my guess about how many can hold for the centaline small office in cc.