Hong Kong developers are hastening sales of new residential units at attractive prices amid improving market sentiment and a sharp drop in mortgage rates.
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On Monday, Wing Tai Properties and China Vanke’s Hong Kong unit priced flats in a project in the New Territories at around 8.5 per cent lower than recent nearby transactions in the secondary market.
Meanwhile, New World Development (NWD) said on Monday that a new project in Wong Chuk Hang, developed with a consortium of builders, would offer its first flats for sale by tender as soon as this week.
The announcements came after Sun Hung Kai Properties (SHKP) sold all 376 flats at its Sierra Sea residential project on Sunday, extending a sell-out streak since the company launched the New Territories project last month. Property agents said they expected overall property market sentiment to continue to improve in May, with first-hand transactions nearly doubling from April to around 3,000.
Wing Tai Properties and China Vanke priced the first 50 units at Uni Residence in Tai Wai – a 32-storey, 240-unit building – at an average of HK$15,481 (US$1,980) per square foot. The sale was expected to launch this month, they said.
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The price list includes 40 one-bedroom units and 10 two-bedroom flats, ranging from 291 sq ft to 394 sq ft. The cheapest unit is a 297 sq ft one-bedroom home, priced at HK$4.12 million, or HK$13,882 per square foot.
Uni Residence was the only new project to hit the market in Sha Tin in the past five years, said Sammy Po Siu-ming, CEO of Midland Realty’s residential division. “The pricing has an advantage as it is more attractive than the current second-hand price of the new developments in Sha Tin,” he said.