Sun Hung Kai Properties is one of Hong Kong’s largest property groups, with revenue of HK$68.4 billion in the 2011-2012 financial year, and profit attributable to shareholders of HK$43.08 billion. The company has been shaken in recent years by disputes between family members, with chairman and chief executive Walter Kwok being forced to step down in a dispute with his brothers Thomas and Raymond. In March, the Independent Commission Against Corruption (ICAC) arrested senior officials as part of a corruption probe that also included former chief secretary Rafael Hui.
SHKP's Riva units on offer at 15pc below market prices
Sun Hung Kai Properties launched the latest batch of 152 units at its luxury Riva residential project in Yuen Long at prices that were up to 15 per cent below the current prices in the area.
Units on offer were priced at HK$7,583 and HK$10,884 per square foot, compared with a recent transaction price of HK$9,216 per square foot at the one-year-old One Regent Place in the area.
"The launch price was unbelievably low. It shows projects in inferior locations will be hit the hardest due to a dramatic change in market sentiment," one analyst said.
The latest prices are also far below the average price of HK$12,268 per square foot achieved by the Riva project in March last year. Two villas were sold at about HK$30 million to HK$40 million each back then.
SHKP said yesterday that it would offer discounts of 5 per cent to buyers who opt for cash payment and up to 3 per cent to SHKP club members, and a 70 per cent subsidy on stamp duties.
The cheapest on offer is a 559 square feet unit on the second floor at HK$4.23 million, or HK$7,583 per square foot.
The developer also released four special units at HK$10,311 and HK$12,433 per square foot. The most expensive is a 1,424 sqft duplex at HK$17.7 million.
SHKP deputy managing director Victor Lui Ting said the launch prices were attractive. "There will be more room for a price increase for the next batch of Riva units," he said.
The project has 780 units.
Separately, Sino Land associate director Victor Tin Sio-un said the developer had sold 15 units during the first three days of the Lunar New Year, including eight at The Avenue in Wan Chai, four at The Graces in Tai Po and three at Park Metropolitan in Kwun Tong.