Developers wary after slow response to One West Kowloon launch
After a slow response by buyers to One West Kowloon, larger projects are likely to be delayed
Hong Kong developers are expected to delay launching new projects offering larger and pricier flats in response to the slowdown in sales caused by the latest measures aimed at cooling down the property market.
The rethink on new releases is expected following a poor response from the market to last week's launch by Cheung Kong of flats in its One West Kowloon in Lai Chi Kok that it priced from above HK$11 million. Sales were slow at the first residential project to release a price list after the government imposed a series of housing restrictions in late October - including a 15 per cent buyer's stamp duty - with only about 40 of the 286 flats on offer sold so far, according to property agents.
"Sales weren't very good mainly because of the large lump sum price," Wong said. He added that pricier flats attracted mainlanders, before the latest measures, as well as local buyers looking to upgrade, and both groups now needed time to re-evaluate their mortgage plans.
"So developers may wait two to three months for the market to accumulate some purchasing power before it offers larger units again," said Wong.
Wong said Sun Hung Kai Properties might choose to launch its Residence 88 project in Yuen Long ahead of its The Wings 11 project in Tseung Kwan O. More than half of the 352 apartments in Residence 88 were two-bedroom, he pointed out, compared with the three- and four-bedroom flats in the 782-unit The Wings II.