Bank of China

Park Summit an easier climb for young buyers

PUBLISHED : Wednesday, 18 April, 2012, 12:00am
UPDATED : Wednesday, 18 April, 2012, 12:00am

Park Summit, a new development in Tai Kok Tsui due to be launched soon, is likely to be priced to attract young first-time buyers, agents say.

A joint venture between Sino Land and the Urban Renewal Authority, the project will offer new buyers of its smaller flats a lower entry price compared with other new projects on the market, they say.

A price list for 50 flats in the project, which is a five-minute walk from Olympic station, was released on Saturday, with an average price of HK$8,607 per square foot.

A day later, prices for a second batch of 50 flats were released at an average of HK$9,280 per square foot, up 7.8 per cent. On Monday prices of a third batch of 50 were released at an average of HK$9,350 per square foot, as were another 50 yesterday at an average of HK$9,485 per square foot.

The 200 flats, 330 sq ft to 860 sq ft in size, are priced from HK$2.88 million to HK$8.69 million. Sales officially begin on Friday.

Flats of about 500 square feet in another new project, Park Haven in Causeway Bay, are being offered for sale for HK$10.23 million, or HK$20,058 per square foot.

Sino Land sales and leasing general manager Victor Tin Sio-un said more than 500 buyers had registered their interest in buying flats at Park Summit. 'Lots of flat viewers born post-1980 and even post-1990 visited our project over the weekend. Some were accompanied by their parents, who may provide financial aid for the home purchases.'

Investors accounted for only about 20 per cent of the potential buyers, Tin said.

At present, flats at The Hermitage, another project built by Sino Land nearby, are fetching monthly rents of about HK$40 per square foot, and Tin said he believed flats at Park Summit, due to be completed early next year, could be let for HK$30 per square foot.

Clement Choi, senior sales director at Centaline Property Agency's branch at Olympic station, said the project was released at a price close to the current transaction prices in the secondary market in the area.

At the nearby one-year-old Lime Stardom project, 15 flats had changed hands this month for between HK$7,000 and HK$10,000 per square foot, according to Centaline, and on Friday last week a 611 sq ft flat on an upper floor at Lime Stardom was sold for HK$5.8 million, or HK$9,493 per square foot.

'Park Summit is offering a lower entry level for potential buyers who preferred projects close to Olympic station,' Choi said.

Flats at the 12-year-old Island Harbourview above Olympic station were selling for HK$5.6 million to HK$6 million in the secondary market.

'With a budget of HK$3 million a buyer would have difficulty finding a unit above Olympic station. But the upcoming sale of Park Summit will provide an alternative to those who are keen to own a unit in a prime location with a limited budget,' Choi said.

The Centa-City Leading Index, a weekly measure of home prices compiled by estate agency Centaline, edged up 0.62 points to 101.79 points during the week to April 8.