Sun Hung Kai Properties

Sun Hung Kai Properties Wings II flats priced cheaper than planned

Li Ka-shing says home prices will remain stable in 2013, falling or rising at most by 10 per cent

PUBLISHED : Saturday, 05 January, 2013, 12:00am
UPDATED : Saturday, 05 January, 2013, 5:09am

Sun Hung Kai Properties yesterday priced the first 50 flats at The Wings II project at HK$10,688 per square foot, about a third lower than it originally intended, and also cheaper than the inaugural 50 flats the project's first phase sold in 2011.

The launch came as the city's richest man and property tycoon Li Ka-shing said home prices this year would remain largely stable, dropping or rising at the most by 10 per cent.

SHKP had previously said its target price tag for flats at The Wings II in Tseung Kwan O was HK$15,000 per square foot on gross floor area basis.

The final price of HK$10,688 represents a 15.8 per cent drop from the average price of HK$12,698 per square foot for the first 50 flats at the development's first phase sold in late 2011.

The Wings II is the second large residential project to announce a price list after the government imposed tightening measures such as the special stamp duty of 15 per cent on non-local and corporate buyers in October.

"Compared with the original target price of HK$15,000 per square foot, this price is much more attractive. Though secondary homes in the neighbourhood are priced around HK$7,000 to HK$8,000 per square foot, I think this price is okay and not too high," said Patrick Wong Chi-leung, a property analyst at BNP Paribas Securities (Asia).

"The developer's sales strategy is to launch prices lower than what it first announces. But following the buyer's stamp duty, developers now need to rely on local buyers so they can't be too aggressive when setting the price," he said, adding that phase I flats were pricier because they had a better sea view.

SHKP described the latest offer as a "super happy price". It said the 50 units, mainly four-bedroom flats sized about 1,200 sq ft, would attract buyers who wanted to trade up.

The most expensive flat, with a gross floor area of 1,250 sq ft, costs nearly HK$18.3 million. The cheapest flats, at 1,200 sq ft, sell for more than HK$12 million.

"[We're] very confident about sales and expect the price to rise by more than 10 per cent for the next batch of flats," it said, adding sales would start next week.

Li Ka-shing, meanwhile, said he did not foresee too much fluctuation in the property market this year. "Prices should stay at the same level, and may fall a bit, just a bit … I think prices may go up, or down, by 10 per cent. There won't be any rapid price surges or declines," he said.

Last month his Cheung Kong launched One West Kowloon in Lai Chi Kok, which also offered large three- and four-bedroom units with prices around HK$11 million. Agents said sales were slow in the wake of the new curbs to rein in property prices.