Sales for Hong Kong luxury flats for elderly soar 330 per cent after developer offered discounts

248 units sold since Sept 12, when Housing Society slashed short-term rents by 16 per cent, waived tenants’ management fees, service charges and rates

PUBLISHED : Wednesday, 12 October, 2016, 9:19am
UPDATED : Wednesday, 12 October, 2016, 9:19am

Sales of a luxury housing project in North Point for Hong Kong’s retirees jumped 330 per cent within a month following two rounds of price cuts and special offers designed to boost interest among potential tenants.

The Housing Society, which developed the Tanner Hill project, announced on Tuesday that 323 of the 588 flats had been leased out or booked since the development’s opening in December last year.

This means that sales have increased threefold since the authority introduced the second round of discounts on September 12. At that point, only 75 flats had been rented out.

About 80 per cent of the sales were on two-year leases, the society said, adding that only around 40 more units were left for short-term rental. This is because the development’s land lease stipulated that no more than half of the flats should be available for such rents.

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“If all the short-term units are leased out, the elderly can still choose to move in on long-term leases, so they will not have to take the risk of the rental market fluctuation,” a society spokesman said.

In March, the society opened the flats – originally only for lifelong contracts – for short-term renting, as well as offering a 10 per cent discount on long-term rents.

After this failed to stir interest, the society last month slashed the short-term rents by 16 per cent and waived tenants’ monthly management fees, service charges and rates.

The monthly rental for a two-year contract now ranges from HK$11,800 to HK$51,800 for flats between 344 sq ft and 1,231 sq ft. Rental for lifelong contracts ranges from HK$1.56 million to HK$9.31 million, with older tenants paying a lower amount.

The society also announced that the development’s clubhouse had opened and a professional care centre had started to provide services, with a 50 per cent discount for day care and rehabilitation services in operation until the end of this month.

A nursing home in the development is expected to open next month and other facilities, such as a clinic and a restaurant, will open soon after.

According to the latest population projection by the Census and Statistics Department, the proportion of those aged 65 and above is expected to increase to 36 per cent in 2064 from 15 per cent in 2014.