Strong sales encourage developers on project launches
Strong sales in the primary market last weekend are expected to prompt more developers to maintain the pace on launch schedules, as the impact of street protests in the city eases.
"Buyers believe the protests will end soon, given that more protestors have been leaving the key locations. The overall impact will be limited if the issue can end in the next two weeks," said Patrick Chow Moon-kit, head of research at Ricacorp Properties.
In the primary market, 456 units were sold last weekend, more than double the 187 units sold the previous weekend.
Two new projects were launched over the weekend, with sales unaffected by the Occupy Central protests. Henderson Land Development and New World Development launched the first batch of 220 units at their joint Double Cove Starview Prime development in Ma On Shan last Saturday. The developers sold 198 units at the site over the weekend. The average selling price after discounts was about HK$11,800 per square foot.
A new batch of 200 units will be launched on Saturday with an average selling price of HK$13,616 per square foot. That is 2 per cent above the prices in the previous batch, according to BNP Paribas.
New World also launched the first batch of 132 units of The Pavilia Hill in Tin Hau last Saturday, selling 130 units. The average selling price after discounts was about HK$23,200 per square foot.
The developer will release a new batch of 83 units today, with an average selling price of HK$28,217 per square foot. That is 1.5 per cent higher than the prices achieved in the prior release, BNP said.
BNP expected most developers will keep up the pace on their launches, with sales at Double Cove Starview Prime and The Pavilia Hill remaining the key focus.
Kerry Properties has resumed the marketing for its upcoming sale of the 8 LaSalle development in Kowloon after a pause when the street protests erupted.
In the secondary market, six units were sold at the 10 largest residential estates tracked by Centaline over the weekend, 50 per cent lower than the 12 units sold on the previous weekend.