CK Asset, Henderson Land among developers drawing out Hong Kong homebuyers with discounted new home offers
- CK Asset sells 39 units out of the 41 on offer at Coastline I and Coastline II
- ‘New mass residential projects have to offer bigger discounts to lure buyers,’: JLL executive
As of 6.30pm on Sunday, the project in Yau Tong had sold 39 units out of the 41 on offer at Coastline I and Coastline II, according to property agents.
“At this moment, price is more important to buyers,” said Buggle Lau Ka-fai, chief strategist at Midland Realty.
“Location is also always a concern for buyers. So, for example, the Yau Tong project is located in the city area and is being offered at a price lower than those in the New Territories, and that is another reason why it received an overwhelming response.
“People still like to live near the city centre because of proximity to work and [a shorter] commute.”
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Homebuyers do like the New Territories as the area is cheaper, but most Hongkongers would still prefer the convenience of the city, so both price and location are important, Lau added. “In this period, [however,] attractive pricing is more important,” he said.
The payment on a typical HK$5 million mortgage over 30 years has risen by 11.5 per cent after the five prime rate increases by HK$2,431 per month to HK$23,511, according to calculations by mReferral.
“New mass residential projects have to offer bigger discounts to lure buyers,” said Norry Lee, senior director of projects, strategy and consultancy department, at JLL in Hong Kong.
“The Coastline II in Yau Tong is one of the examples where the prices are attractive to buyers, marking the start of a price war. We expect some developers will follow the price cuts later this year, while the others may slow down project launches.”
Any potential price cuts are likely to give a slight boost to property transactions, including those involving new and lived-in homes, car parks and commercial buildings, for the rest of the year, Midland’s Lau said.
As of Thursday, 42,754 property transactions had been recorded in Hong Kong, comprising deals for 10,243 new homes and 36,974 secondary homes, with the rest for commercial buildings and car parks, according to data compiled by Midland.
“The number of new homes sold may go back to the 14,000-level this year,” Lau said. “At first glance, that is a big jump, but last year was really bad. The annual transaction number of about 10,000 primary homes was much lower than the annual average of about 16,000 between 2017 and 2021.”
Other property projects that were on sale this weekend also saw buyers snapping up a number of units.
As of 6.30pm on Sunday, Villa Garda III had sold 74, or 53 per cent, out of the 138 units put up for sale, agents said. The project in Tseung Kwan O district’s Lohas Park neighbourhood, valued at HK$1.03 billion, is being developed by Sino Land, K Wah International and China Merchants Land.
The flats on sale included 17 one bedroom, 113 two bedroom and 8 three-bedroom units, with areas ranging from 340 to 719 sq ft.
Villa Garda III offered various discount schemes, including a 200-day Talent Payment plan, where units are priced at an average of HK$16,308 per square foot after a maximum discount of 14 per cent and a 4.5 per cent cash rebate on the balance of the transaction price. It is believed to be the most attractive plan for buyers.
Under the discount plan, these flats were being sold for HK$5.77 million to HK$12.28 million, or HK$15,168 to HK$17,653 per square foot.
There is no specific definition of talent in the price list, nor is there any requirement for the provision of diploma certificates.
Henderson Land’s The Holborn in Quarry Bay also sold three units. A maximum discount of 21 per cent and a 6 per cent early-completion cash rebate can be enjoyed if buyers settle the purchase price within 90 days after signing the preliminary agreement for sale and purchase of the project.
The Henley Park, another Henderson Land project, found one more buyer after putting up for sale 18 units in the Kowloon development. Units were priced between HK$7.93 million and HK$18.4 million, or HK$20,397 to HK$30,456 per square foot.
Other projects were also put on sale this weekend. In Lohas Park, Manor Hill put up 12 units for sale at an average price of HK$16,744 per square foot. This batch of units comprises two-bedroom units with storage capacity and an area of 428 sq ft. They were put on sale for a price range of HK$6.91 million to HK$7.32 million.
Uptify in Mong Kok, which offered 21 units on Sunday, provided a maximum discount of 24 per cent, which was increased from 14.5 per cent in early July, according to Centaline Properties.
