Developer first to reveal breakdown in price list
Homebuyers of a New World Development project in Kowloon City will need to pay as much as HK$1.68 million, or 20 per cent of the price of their flats, for common areas such as refuse and pump rooms.
It was the first time a developer has disclosed the detailed breakdown of each unit in terms of gross floor, saleable and common areas - a result of increasing request from buyers and market watchers to improve transparency.
New World said in a price list released yesterday that it would offer the first batch of 22 units at Prince Ritz, at 448 Prince Edward Road West, for an average of HK$6,301 per square foot.
The project has 110 units, with gross floor areas ranging between 738 and 1,144 square feet and selling for between HK$4.22 million and HK$7.77 million.
Based on the price list, a 1,144 square feet unit needs to contribute 248 square feet of common area, while a 738 square feet unit has to share 160 square feet of common area. This means buyers will need to pay HK$915,800 to HK$1.68 million for common areas alone, depending on the size and location of their flats.
The list said common areas include the staircases, corridors, entrance lobby, telephone equipment room, refuse room, transformer room, electrical switch rooms, meter rooms and the management office and its washroom. Areas in the clubhouse and sky garden are excluded.
'Buyers will pay more if their units require sharing common areas,' said Alnwick Chan Chi-hing, an executive director of Knight Frank.
The property industry has urged the government to enact laws so developers will use saleable area instead of gross floor area as the basis for flat prices.
A surveyor said developers would benefit from listing the saleable and common areas at the same prices.
'That explains why developers are willing to pay aggressive prices during land auctions, as the profit earned from selling common areas at market value will lower the cost,' the surveyor said.
Mr Chan, however, said surveyors would exclude common areas when they provided property valuation for their clients.
Barbara Ho Ng Yin-yue, New World's sales and marketing director, said the company hoped to generate HK$700 million to HK$750 million from the sale of Prince Ritz's 110 units.
The firm aimed to price the second batch at HK$7,000 per square foot if the first batch was well received, Mrs Ho said. Units would be released for sale either this weekend or on Monday, she added.
New World will also offer a 6,079 square feet luxury house at its 33 Island Road development in Deep Water Bay for HK$200 million. It is the last available house in the project.
Mrs Ho said the price for house No 6 included interior decoration costing more than HK$10 million.
The project has so far generated about HK$1.4 billion in revenue from the sale of its nine houses.
Laws of integrity
Property industry urges government to enact saleable area laws
Maximum amount buyers will have to pay for common areas at Prince Ritz in Kowloon City, in HK$m