Strong sales of new flats point to Hong Kong property market upturn

PUBLISHED : Sunday, 31 August, 2014, 4:40am
UPDATED : Sunday, 31 August, 2014, 4:40am

Fast-selling properties in Tseung Kwan O and at a luxury project at Kowloon Station could be a sign of an upturn in the property market.

Sun Hung Kai Properties yesterday sold out the first batch of 192 flats at The Wings IIIA in Tsueng Kwan O. The average price of the flats is HK$13,345 per square foot.

"Since leasing demand in the district is strong and rental yield could reach 3 per cent, about 30 per cent of our clients at the project are investors. The remaining are end-users," said Midland Realty chief executive Sammy Po Siu-ming.

One buyer, a Mr Poon, bought a two-bedroom flat at the project for about HK$6 million.

He said: "I lived in another estate in the district. But it is not as accessible as The Wings IIIA. There is also a lack of similar housing supply in the area."

Investors were even more active in the sales of the remaining flats at the 11-year-old HarbourSide at Kowloon Station.

The developer, Hang Lung Properties, released 48 flats for sale yesterday and sold out by 3pm. About 70 per cent of Midland's clients at this project are investors.

"The average price of the project is about HK$25,000 per sqft, about 20 per cent less than the second-hand flats in the district. So it attracted many investors," said Eric Wong, a senior manager at agency Ricacorp.

The flats, ranging from 809 sqft to 1,135 sqft, were sold for HK$18.25 million to HK$56.78 million.

Louis Chan Wing-kit, the managing director of the Centaline agency's residential department, said about 10 per cent of the buyers were mainlanders, which was higher than at other new projects.

The controversial tiny flats at Cheung Kong's Mont Vert in Tai Po were also released for sale yesterday and the first batch of 21 was sold out in 30 minutes.

A Ms Lau bought a studio flat for HK$1.77 million. "I lease a 400 sqft flat in Tuen Mun for HK$6,500 a month, but my landlord has sold the flat. I have to move out in two weeks," she said.

Agents said about 270 new homes were sold yesterday.

Two weeks ago the Centa-City Leading Index, created by Centaline Property Agency to monitor prices in the secondary market, hit 125.66, topping the record of 124 set the week before.