Hong Kong property: Henderson’s Gateway Square Mile sees modest sales, the first setback after lifting of curbs
- Henderson Land Development sold 31 of the 68 units offered in the first round of sales at Gateway Square Mile in Tai Kok Tsui as of 8:30pm
- Uptown East in Kowloon Bay, a joint venture between Wong Sun Hing and New World Development, found 50 buyers for the 132 units on offer
New home sales in Hong Kong stuttered slightly on Friday, with buyers giving a lukewarm response to Henderson Land Development’s latest project in Tai Kok Tsui, the first setback after the removal of property curbs.
Henderson sold 31 of the 68 units, or 45.6 per cent, in the first batch at Gateway Square Mile in Tai Kok Tsui as of 8.30pm, according to the developer.
The company was unable to replicate the success of its Belgravia Place project. Two batches of flats launched earlier this month sold out instantly.
The flats at Gateway Square Mile, comprising 46 one-bedroom and 22 two-bedroom flats, ranged from 252 to 353 sq ft. They were priced from HK$4.37 million (US$589,000) to HK$7.3 million after discounts, or HK$17,029 to HK$21,586 per square foot.
“The project is attractively priced, and buyers can expect a rental return of 3 per cent,” said Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau.
The project has garnered huge interest from prospective buyers, 40 per cent of whom are from mainland China, Po said, adding that one buyer had shown an interest in buying two units for HK$16 million.
The second batch on Friday included 18 studios, 38 one-bedroom units and 76 two-bedrooms flats, ranging from 273 sq ft to 508 sq ft. They were priced from HK$3.82 million to HK$8 million after discounts, or HK$13,800 to HK$17,049 per square foot.
Another 50 units have been put up for sale by tender, the developers said.
Buyers lapped up 255 of the 336 units in the first round last Sunday, pulling in sales of about HK$1.7 billion, according to the developer.
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Meanwhile, all eyes are on Wheelock Properties, which is selling 368 units in the first batch at Seasons Place in Tseung Kwan O on Saturday.
The project has attracted more than 10,000 prospective buyers who have put down deposits after the developer priced flats at a five-year low for the district.
More than 20 per cent of the buyers are from mainland China, according to the developer. Many buyers are interested in multiple units, and their numbers are increasing.
The units include one to three bedrooms, with areas ranging from 323 to 665 sq ft. The price after discounts has been set from HK$4.47 million to HK$10.8 million, or HK$13,576 to HK$16,257 per square foot.
The discounted average price of the 368 units is HK$14,604 per square foot.
Some 109,000 new homes may be available in the next three to four years, according to the Housing Bureau.
Major home builders such as Henderson Land, Sino Land, CK Asset, Wheelock Properties, Wharf Properties, New World and K Wah International Holdings will each offer anywhere between 88 and 7,720 units this year, according to JLL.
Late last month, Financial Secretary Paul Chan Mo-po scrapped all cooling measures restricting property transactions as he unveiled a budget aimed at restoring the city’s flagging fiscal health.
Midland’s Po said the market expected lending rates to fall by 0.75 per cent.
With all factors aligned in favour of the property market, transactions on the first-hand market are expected to reach 4,500 this month, the highest since November 1998, according to Midland.
