Swire to maintain residential prices as supply remains tight
Swire Properties managing director Keith Kerr says the firm has no immediate plans to cut the price of The Floridian development in Quarry Bay, despite a slowdown in property sales.
A sale of 20 units at The Floridian was conducted on October 28, when the stock market recorded its biggest one-day loss, with the Hang Seng Index falling 1,438.31 points. The average price of the units was $12,114 per square foot.
After the topping out ceremony of its Lincoln House project in Quarry Bay yesterday, Mr Kerr said there were still 90 units in The Floridian to sell. These would be put on the market once the sector had stabilised.
'We see no reason to change [the price] at the moment, because the supply of residential units on Hong Kong Island remains tight,' he said. 'We are not panicking about the current situation.' Swire would assess the response to other developments that had been released for pre-sale at reduced prices by its competitors before taking further steps.
It was difficult to forecast movements in property prices due to the present low volume of transactions, Mr Kerr said. The average rental rate of the office development at Lincoln House was $35 per square foot a month, in line with market rates.
Talks with various parties were under way, Mr Kerr said, but he refused to disclose details.
The 23-storey Lincoln House, providing 285,000 square feet, is due for completion in June next year.
Mr Kerr said the office market would stay firm, and he expected rents would grow by 8 to 9 per cent next year.
