Wheelock Properties launches initial batch of flats in Tuen Mun project at close to development cost
Ninety-two units have been released in Wheelock’s Napa in Tuen Mun at prices ranging from HK$9,563 to HK$13,014 per sq ft, not far above the cost of construction and land acquisition, the developer says
Wheelock Properties has released its new project Napa in Tuen Mun at a price close to development cost, amid intense competition in the New Territories where a large number of new flats are under development.
The developer on Thursday announced the price list for the first batch of 92 units at an average of HK$10,438 per square foot, after factoring a maximum discount of 18.5 per cent.
“This price is close to our development cost as the construction cost is nearly HK$5,000 per square foot,” said Ricky Wong, managing director of Wheelock Properties.
Wheelock won the site, 88 So Kwun Wat Road near Harrow International School, for HK$1.39 billion, or HK$3,683 per sq ft in January 2013.
Without taking into account interest expenses, the construction and land price have already amounted to HK$8,683 per sq ft.
Thomas Lam, head of valuations and consultancy at Knight Frank, said interest expenses would cost about three to four per cent a year of the value of the loans used to finance the project.