Few takers for latest batch of flats at Hong Kong’s cheapest residential project this year

Less than half the flats on offer at a residential project in Yuen Long were sold on Sunday where a few buyers forfeited huge deposits deals last week, with analysts pointing out that investors are having second thoughts amid rising mortgage rates, US-China trade war, struggling stock market and government measures to cool runaway prices.

Sun Hung Kai Properties, the largest developer in Hong Kong, sold only 15 of the 30 units on offer at Park Yoho Milano in the northern Yuen Long district, according to Midland Reality Agency. Last Wednesday five buyers cancelled their agreements foregoing nearly HK$2 million to terminate the sales.

The five flats whose sales agreements were cancelled were not included in Sunday’s sale.

Another project, City Hub in To Kwa Wan in Kowloon, jointly developed by Bonds Group of Companies, Chevalier Group and the Urban Renewal Authority, fared even worse. Only one unit measuring 338 square feet was sold for HK$8.1 million (US$1.03 million), according to Midland Realty.

Homebuyers getting cold feet in Hong Kong’s property market amid growing uncertainties

“It is definitely not good, but not too bad either as the project has already done several sales rounds,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division, adding that it also faces competition from other projects.