New residential projects off to a flying start
Sales show tighter lending for second mortgages is having little effect on long-term investors
Two new residential projects, in Tuen Mun and Ma On Shan, have generated a strong response, providing further evidence that the Hong Kong Monetary Authority's move to tighten lending for second mortgages has had a limited impact on home buyers and long-term investors.
Sun Hung Kai Properties had sold more than 50 of 116 flats by 10pm last night at Century Gateway in Tuen Mun after the developer cut prices by at least 20 per cent from the first batch.
The sale started at 9pm.
At the same time, Henderson Land Development's joint venture development Double Cove, at Ma On Shan, sold 60 of 100 flats on offer in the first few hours from 5pm. They were snapped up at an average of HK$8,618 per square foot.
The units are sized from 638 to 706 sq ft. Prices start from HK$5 million to HK$7 million.
"End users are bringing forward their purchases as the low interest rates will be maintained until 2015 and the US money printing will intensify asset inflation," said Sammy Po Siu-ming, a director at property agency Midland Realty.
SHKP's lower pricing strategy also should boost buying interest.
The average price of the latest batch of flats in Tuen Mun was HK$8,148 per square foot - about 25 per cent below the first launch price of HK$11,000 per sq ft.
The strong sales outcome has prompted Sino Land to raise prices for seven flats at Providence Bay by 1 to 3 per cent. The units start from HK$12.41 million, or HK$8,340 per square foot, for a 1,488 sq ft unit, rising to nearly HK$17.83 million, or HK$8,753 per sq ft, for a 2,038 sq ft flat.
To raise buying interest, Sino Land said buyers of Providence Bay in Tai Po would receive a HK$16,888 hotel coupon to celebrate the upcoming Mid-Autumn and October 1 National Holiday. The sweetener will last until October 3. The units will go on sale today.
Wing Tai Properties said it had sold 41 flats at its luxury development The Pierre, in Mid-Levels, and achieved prices as high as HK$27,200 per sq ft since they went on the market on Monday.
It said one investor had bought four units for a total of more than HK$30 million.
In the secondary market, the Government Property Agency has sold 10 luxury homes through auctions for between HK$19 million and HK$39 million.
All units sold for a total HK$288 million.