Cheung Kong (Holdings) is discounting prices at its Banyan Garden project in Cheung Sha Wan by 6 per cent in the face of aggressive price cutting at rival Metro Harbour View in Tai Kok Tsui.
The escalation in the residential price war follows weaker-than-expected sales at HKR International's Coastal Skyline in Tung Chung, which was seen as a major test for market sentiment after the government unveiled a package of stimulus measures to support the property market.
Cheung Kong sales manager Francis Wong said yesterday that 12 units at Banyan Garden Block 6 were being released for sale at an average price of HK$2,510 per square foot. This compared with an average price of HK$2,670 per square foot achieved for 32 units last weekend, he said.
The cheapest of the latest units released is HK$1.55 million and the lowest average price HK$2,374 per square foot.
'Dao Heng Bank is offering buyers up to 90 per cent mortgage with free insurance premium,' he said, adding the lowest interest rate was 2.25 per cent below prime.
Dao Heng consumer banking vice-president Kelvin Chung said the insurance premium for a 90 per cent mortgage was up to 3.3 per cent of a flat's value.
Cheung Kong had realised HK$4.6 billion for about 2,100 units sold at Banyan Garden in the past year, Mr Wong said.