Flat launches will give Hong Kong housing market a boost, analysts say

Upcoming flat launches are expected to give the local home market a boost amid improved buying sentiment after the Christmas and New Year's holiday break, say agents and property analysts.

Property analysts are upbeat about the sales of Sun Hung Kai Properties' the Wings II, a 780-flat residential project in Tseung Kwan O, which goes on sale this week. The price list for the project was released on Friday, making it the second large residential project to post a price list since the government introduced measures in October last year to slow house-price increases. Among the measures was a 15 per cent buyer's stamp duty.

The price list released on Friday by SHKP puts the average price on the first batch of 50 flats to be released at The Wings II at HK$10,688 per square foot on a gross-floor-area basis, about one-third less than it originally hoped to receive.

"The developer has been very smart," said Credit Suisse analyst Joyce Kwock.

"It has chosen the right window to launch the project, before the policy address [due on January 16, when the government may announce further measures to cool the market down]; and also before Chinese New Year [on February 10, when the market will turn quiet]."

Kwock added that the prices posted by SHKP seemed to be reasonable because they did not represent a big premium or a discount on prices currently being paid for secondary flats in the area.

"These flats look cheaper than the inaugural 50 flats sold in the project's first phase, but in fact they are not. The first 50 flats in the first phase were all located above the 30th floor, so the prices were higher. This time they include flats located on lower levels. So it's a smart pricing strategy."