Wheelock sells 92 per cent of flats in second batch of Koko Rosso project in Lam Tin, despite higher prices

Wheelock Properties sold 148 of 160 flats on offer in the second launch of the project within three hours on Wednesday night
The developer raised the average price to HK$18,441 (US$2,349) per square foot, 0.5 per cent higher than the last round of sales on February 24

Wheelock Properties

Cheryl ArcibalandYulu Ao

Published: 7:00am, 2 Mar 2023

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Hong Kong’s homebuyers are trickling back into the market.

Wheelock Properties sold 148, or 92 per cent, of the 160 flats on offer at its Koko Rosso project in Lam Tin within three hours after opening the sale at 9pm local time on Wednesday, according to agents. The company raised the average price of the current offer to HK$18,441 (US$2,349) per square foot, 0.5 per cent higher than the last round of sales on February 24.

“The sales have been strong, and there are many buyers,” said Ricky Wong, managing director at Wheelock. The response matched the bullish first launch of the 392-unit Koko Rosso project, when all 148 flats were snapped late last month.

The buoyant sale – despite the higher average price – underscored rising confidence in Hong Kong’s property market following the city’s abandonment of Covid-19 restrictions, the last of which was the mandatory wearing of face coverings on Wednesday.

Potential buyers wait to purchase flats in the Koko Rosso development at an office in Tsim Sha Tsui on February 24, 2023. Photo: Xiaomei Chen

The reopening of the border between Hong Kong and mainland China has raised hopes for the city’s battered property market, as buyers are seen anticipating an economic recovery following nearly three years of Covid-19 restrictions.

“The units on offer were sold by 11.30pm,” said Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau.

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Hong Kong saw an uptick in the property market in February. Overall transactions increased 34.8 per cent month over month to 5,969 deals, hitting the highest level since June 2022, according to data released by Centaline Property Agency on Wednesday.

The total value of the transactions also surged 35.1 per cent month over month to HK$43.9 billion, the highest since August 2022.

“The data showed a growing market sentiment after the border reopening,” said Wong Leung-sing, senior associate director of research at Centaline. “Buyers who turned to the home market before [Lunar New Year] led the rise in transactions, and the market retained its heat after that.”

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Transactions should rise to around 7,000 in March thanks to a slower pace of interest-rate increases and the Hong Kong government’s decision to cut the ad valorem stamp duty, Wong said.

The latest batch of flats on offer at Koko Rosso range in size between 308 and 497 sq ft, according to Wheelock. The cheapest unit is priced at HK$6.06 million, after discounts.

“Most of the units for sale are priced below HK$10 million,” Po said. “The flats have a good location and a walking distance from the subway station with a good view of the mountains and the sea.”

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The strong sales also came in the wake of a stamp duty cut announced by the government last week.

Financial Secretary Paul Chan Mo-po announced adjustments to Hong Kong’s ad valorem stamp duty, which will amount to HK$100 for homes worth up to HK$3 million, instead of up to HK$2 million previously. The changes to the stamp duty, which are on a sliding scale, apply to homes worth HK$10 million or less.

Given that the flats at Koko Rosso are being sold for lower than HK$10 million, the project was expected to benefit from the policy.