business · On.cc

Ap Lei Chau flat sold at HK$7.6m after 16 years yields just HK$80,000 gain

On.cc · 1 SOURCESabout 1 hour ago2 MIN

Summary

A one-bedroom unit at South Horizons (Nan Wan) in Ap Lei Chau has been sold for HK$7.6 million with an existing tenancy agreement, after the owner reduced the asking price from HK$8 million. The transaction highlights the weakening secondary property market in Hong Kong, as the seller who held the property for approximately 16 years will likely exit with a net loss once transaction costs are factored in .

Key Points

The unit is located at Tower 10, high floor, Flat D at South Horizons, with a saleable area of approximately 463 square feet and a one-bedroom layout facing mountain views .
The property was originally listed at HK$8 million before a price reduction to HK$7.6 million, achieving a per-square-foot price of approximately HK$16,415 .
The original owner purchased the unit in 2010 for HK$7.52 million and held it for about 16 years, recording a paper gain of only HK$80,000 .
The new buyer is an investor who is optimistic about the area's yacht tourism development plans and intends to hold the property for long-term investment purposes .
The unit currently generates monthly rental income of approximately HK$18,500, providing an immediate rental yield of about 2.9% .

Why It Matters

This case illustrates how Hong Kong's prolonged property market downturn has eroded gains even for long-term owners in established residential areas. Investors are now increasingly focused on rental yield rather than capital appreciation, while sellers who bought near previous market peaks face the prospect of realizing losses after holding for extended periods .