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Home prices under pressure

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SCMP Reporter

New SHKP units in Tseung Kwan O are being sold at secondary market rates

Fierce competition in Tseung Kwan O's primary market has prompted Hong Kong's largest developer to price some units in its new residential project at prevailing secondary market rates.

Central Heights, the newest block in Sun Hung Kai Properties' Park Central development near the Tseung Kwan O MTR station, is also the first new project to be marketed since the government released a new application list for land sales on Friday.

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According to SHKP, about 100 of Central Heights' 392 units sold yesterday at an average $4,500 per square foot.

Property agents said the cheapest units went for about $3,800 per square foot.

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That is in line with secondary transactions at the two-year-old Park Central development, a joint venture also involving MTR Corp, Henderson Land Development, Nan Fung Development and Chinachem.

According to Centaline Property Agency, a 726 square feet, low-floor unit in Park Central's Block 7 sold at $2.7 million, or $3,719 per square foot. Most secondary transaction prices in Park Central have ranged from $3,300 to $3,600 per square foot.

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