Sun Hung Kai Properties plans to offer the last 100 flats in the Arch for sale this month, creating more grief for existing owners who bought into the luxury building at Kowloon Station as an investment but have been hard-pressed to turn a profit on resale.
The developer launched the Arch in April last year, and it came quickly to symbolise everything that - depending on one's point of view - was good or bad about Hong Kong's latest property boom. The penthouse of the 1,052-unit project sold for $31,500 per square foot, or $168 million - the highest price per square foot ever in Kowloon.
The remaining units will be released this month, at prices of $11,000 to $15,000 per square foot - 5 per cent to 10 per cent higher.
For existing owners the decision to sell the last flats carries a threat of depreciation.
Property agents say most of the flats on offer will be in Sky Tower, which has the best harbour views in the development. And people who buy them direct from SHKP will not have to pay an agent's commission.
Not only that, the developer is also offering payment sweeteners, according to Centaline Properties district manager Tang Wai-yip, who said the new release would have a definite negative impact on the secondary market.
The secondary market at the Arch consists of more than 500 units, considered a very high proportion. Asking prices range from $9,000 to $16,000 per square foot.