Cheung Kong (Holdings) is offering flats in its latest project at prices below the secondary market in the area, reflecting slumping sales and growing fears of more cooling measures after chief executive-elect Leung Chun-ying takes office next week.
The first batch of 138 flats at The Beaumount in Tseung Kwan O was priced at an average HK$5,313 per square foot for cash buyers.
The 915 to 1,001 sq ft flats are being offered at between HK$4,993 and HK$5,905 per sq ft, or HK$4.5 million to HK$5.8 million each. Later, a second batch was offered at HK$5,324 per sq ft. The 1,777-flat development is the biggest to go on sale this year.
The aggressive pricing comes after secondary transactions last week dropped to a 21-week low, and is as much as 25 per cent below the HK$6,600 per sq ft average transaction price in Tseung Kwan O.
If The Beaumount fails to generate strong sales, it could trigger a wave of discounting by other developers, said Eric Yuen Chi-fung, head of research at Guoco Capital.
Sammy Po, a director of Midland Realty, said residential prices were close to their peak, having risen about 10 per cent since January.
'Investors may opt to cash in on their flats as Leung shows his strong determination to control home price growth,' he said.