SHKP’s low price strategy boosts interest in Grand Yoho project
Buyers have flocked to the residential development in Yuen Long, attracted by low price tag, interest-free loans
While most developers are raising their prices and cutting incentives in order to capitalise on a recent sales upswing, Sun Hung Kai Properties has taken the opposite approach in a bid to steal market share from rivals.
SHKP came under the spotlight last week when it released its large residential project, Grand Yoho in Yuen Long, at lower-than-expected prices. The developer is also offering interest-free loans to lure homebuyers away from rivals.
Chris Wong, a director at Centaline Property Agency’s New Territories West district, said: “The strategy is effective. Home seekers have shifted their attention away from the secondary market to Grand Yoho.”
On August 17, the developer released the price list of the first batch of 226 units at Grand Yoho, with prices as low as HK$9,931 per square foot after factoring in a maximum 18.25 per cent discount.
SHKP released an additional 121 units for sale at same price on Monday .
A 543 square foot unit on the seventh floor of Block Nine is being offered for HK$5.29 million, or HK$9,931 per square foot after discount, the lowest in terms of price per square foot.
The discounted price for the flats, with sizes ranging from 514 sq ft to 774 sq ft, are between HK$5.28 million and HK$11.09 million, or HK$9,931 per sq ft to HK$14,334 per sq ft.
The prices are about 10 per cent lower than Yuccie Square, built by Cheung Kong Property, which was being offered for HK$13,200 per sq ft last month.
“With SHKP’s flexible financing plan, it will become more affordable for buyers who may not want to put a large portion of their savings into a home purchase,” said Wong.
Buyers of Grand Yoho who choose the “Yoho30 Plus” scheme will receive a 30-month, interest-free loan of up to 92 per cent of the flat’s value, much higher than the standard bank mortgage ceiling of 60 per cent of a flat’s value up to HK$10 million, and 50 per cent for those above HK$10 million.
The development has drawn more than 10,000 potential buyers as of Sunday night , who must put up a deposit of HK$100,000 to sign up for the flats. The show flat at ICC attracted more than 40,000 viewers between August 18 and August 21.
“Parking spaces at ICC were full once the show flats opened for viewing,” said Wong.
He said the flats would attract upgraders, including people living in Kowloon or Hong Kong Island looking to trade for larger flats at Grand Yoho for a smaller lump sum amount.
In another of SHKP’s new projects, Lime Gala, in Shau Kei Wan, a 289 sq ft studio, the smallest unit available, was priced at about HK$5 million after discount, or HK$17,802 per square foot. The project officially came on the market on Sunday.