Sun Hung Kai Properties (SHKP) needs to adopt a price undercutting tactic to lure buyers to the 1,024 units to be released this month at the company's Sha Tin development, according to property agents.
Centaline Property Agency's Yuen Wai-chung said the initial batch of Prima Villa flats would need to be released at below second-hand home prices as buyers remained price-sensitive.
He expected the price range of HK$3,000 to HK$3,200 per square foot would be attractive compared to secondary-transacted prices in City One Sha Tin, which were between HK$3,200 per square foot and HK$3,500 per square foot. Transacted prices in the area had dropped 10 per cent from last month, he said.
SHKP's marketing arm, Sun Hung Kai Real Estate Agency, is expected to secure pre-sale consent for Prima Villa in about two weeks, and it would begin sales shortly afterwards, sales general manager Eric Chow said.
The development's units are 500 sq ft each.
Mr Chow said prices for Prima Villa would take into account the second-hand transacted prices of about HK$4,000 per square foot in the area.
SHKP sales general manager Alfred So Chung-keung said developers were unlikely to enter another price war despite lacklustre market sentiment.
