Sun Hung Kai cuts new flat prices again as Hong Kong developers face headwinds
The company is offering the latest batch of units at its Cullinan West II development in Kowloon at 10 per cent below the price of the previous sale
Sun Hung Kai, Hong Kong’s biggest property developer, has cut the prices of homes at one of its projects by as much as 10 per cent, the second time in less than a month it has taken such action in the latest sign that the property market may be cooling down.
The company is offering 119 units at its Cullinan West II development atop Nam Cheong MTR station in Kowloon at an average price of HK$23,893 (US$3,044) per square foot after discounts, about 10 per cent lower than the prices of a previous batch put on sale last December.
Other developers are likely to follow Sun Hung Kai, analysts said, given a subdued outlook for the market as interest rates rise, the US-China trade war brings uncertainties, stock markets struggle and Hong Kong government measures to cool prices start to bite.
“The overall downbeat sentiment is still taking a toll on the market,” said Derek Chan, head of research at Ricacorp Properties. “Developers are worried that they cannot unload their properties with headwinds ahead.”
Most new residential projects in Hong Kong in the past six months have been priced at higher than those of lived-in homes, and developers have been able to increase prices with each new batch of a project because of strong demand. However those times may be coming to an end.