Island Resort 3-Bedroom: Sold at a Loss Despite Being 10% Overpriced?!

Amid an uncertain market, some units are still selling at high prices. Recently, a three-bedroom unit in Island Resort, Siu Sai Wa, sold for HK$13.5 million, with a price per square foot of HK$16,265. The original owner held the property for seven years, making a nominal profit of HK$350,000, a mere 2.7% increase in value.

The unit involved is a unit B, a high-floor apartment in Block 8 of Island Resort, with a saleable area of 830 square feet, featuring three bedrooms. It boasts floor-to-ceiling windows with full sea views of Tseung Kwan O. The new buyer was drawn to the sea view and the well-maintained interior, ultimately negotiating a purchase price of HK$13.5 million, translating to about HK$16,265 per square foot.

Sold Over 10% Above Valuation

According to the Bank of China online property valuation, the unit was valued at HK$12.13 million, or HK$14,614 per square foot. This means the transaction price exceeded the valuation by approximately HK$1.37 million or about 11.2%.

The original owner bought the unit in April 2017 for HK$13.15 million and invested over a million in luxury renovations. After holding the property for 7 years, they made a nominal profit of HK$350,000, a 2.7% increase in value. However, excluding renovation costs and other transaction expenses, the sale likely resulted in an actual loss.

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