Developer Kerry Properties has chosen not to follow the market trend of heavily discounting the prices of flats in its project The Summa, which will be released for sale this week.
In sharp contrast to steeply discounted launch prices announced last week by rival Cheung Kong (Holdings) at its Diva project in Tin Hau, Kerry has priced its units in The Summa in Sai Ying Pun at the same level as previously released new projects in the vicinity, and above secondary market prices for the area.
Cheung Kong grabbed the market's attention last week with the launch of units in The Diva, a single-block building at 133 Electric Road in Tin Hau, near Causeway Bay Market, at average asking prices of HK$22,514 per sq ft for the 118 flats, which range in size from 493 to 741 square feet. That is 16 per cent below the average price per square foot of saleable area of HK$26,779 achieved in November by Henderson Land for its nearby project The Hemispheres.
Buyers at The Diva who qualify for the maximum discount on offer when the flats are sold from Friday this week will enjoy a discount of 25 per cent on The Hemispheres' prices if they buy their flat by Tuesday and for cash, and join the project's Club Lifestyle. The minimum price of a 493 sq ft flat in the project works out at HK$7.97 million after discounts.
Kerry Properties' The Summa in Sai Ying Pun will also be launched for sale this week. The development in Hing Hong Road, near King's College, comprises 168 flats, and according to the price list released on Friday last week the average price per square foot of saleable area of the first batch of 50 flats works out at HK$27,202.
The saleable area of the flats is between 756 and 1,513 sq ft, and prices will range between HK$17.92 million and HK$49.9 million. The average price after discounts is HK$22,989 per sq ft - higher than secondary market prices in the district, which range between HK$13,000 and HK$18,000 per sq ft. But the prices are similar to those achieved by Sun Hung Kai Properties at its Imperial Kennedy project, also in Western district. The average discounted price of the first flats released for sale there in November was HK$23,035 per sq ft.
Despite the pricing, the market response to the release of the flats in The Summa was positive, said Shiu Ka-kuen, a district sales manager at Centaline Property. "Most of the interested home seekers are upgraders who live in the district," he said.
In contrast, many buyers who had indicated an interest in units in The Diva were investors, according to Eddie Tao, at Hong Kong Property Agency.
Kerry Properties is part of the Kerry Group, which also controls SCMP Group, publisher of the South China Morning Post.