Sino Land is to offer its low-density residential development in Tai Po at 23 per cent lower prices than the previous launch, in November. This is to compete with a rival project in Sha Tin, according to one analyst, amid speculation of further tightening of mortgage lending for buyers purchasing second homes.
The developer released the first batch of 50 units at its Providence Peak, the second phase of the Providence Bay development, in Tai Po, Hong Kong, at an average of HK$8,379 per sq ft, compared with HK$11,000 per sq ft when it launched the first phase, in November.
Yesterday, it offered the second batch of 80 Providence Peak flats at an average of HK$8,533 per sq ft, and one 2,312 sq ft flat with private pool and 2,573 sq ft terrace at HK$16,080 per sq ft, or HK$37.18 million.
The latest launch price is about 7 per cent below the HK$9,235 per sq ft average price of the first batch of a rival project, The Riverpark, built by New World Development above Che Kung Temple MTR station in Sha Tin.
Property analyst Alfred Lau said the Providence Peak prices were set to compete with those at The Riverpark. 'The two developments are direct competitors as both require large lump-sum involvement,' said Lau, of Bocom International, the investment banking unit of Bank of Communications.
Flats at Providence Peak, with sizes ranging from 788 sq ft to 2,037 sq ft, are being offered for between HK$6.43 million and HK$37 million. The flats may go on sale on Saturday.