In more signs of increasing competition for buyers among developers, Sino Land and Hopewell are launching their joint residential project in Wan Chai at 20 per cent below secondary prices in the area.
The developers released the price list for the first batch of 220 units at the Avenue at an average of HK$18,771 per square foot for buyers who will pay in cash, compared with the HK$23,500 going rate at a nearby development, JResidence.
"The launch price is lower than my expectations," said Alfred Lau, a property analyst at Bocom International.
The sales plan for the Avenue, which has 1,096 units, comes on the heels of Nan Fung Development's offer this week of up to 22 per cent discounts on its first batch of 318 units at the Visionary project in Tung Chung.
Factoring in the discounts, a 436 sqft unit on the sixth floor of Block 2 at the Avenue will change hands for HK$7.67 million, or HK$17,606 per square foot, while a 338 sqft flat on the seventh floor is being offered for HK$6.1 million.
To speed up sales, the developers will offer 8 per cent off for buyers who opt for cash payment in 180 days plus a 2 per cent discount and a 7.5 per cent cut as a subsidy to help them meet stamp duty payments.
"It is a low-price tactic to draw buyers. Once it generates strong sales for the initial batch, developers will cut the sweeteners and raise prices for the next batches," Lau said.
On Wednesday, Hutchison Whampoa sold a 6,863 sqft house on 28 Barker Road at the Peak for HK$740 million, the second-highest price paid for such property in Hong Kong.