Mainland developer China Vanke sets low prices for first Hong Kong housing estate in Tuen Mun

China Vanke, the mainland’s second-largest developer by sales, has priced apartments at its first wholly-owned residential development in Hong Kong’s Tuen Mun starting at HK$9,878 (US$1,265) per square foot – cheaper than 30-year-old subsidised housing in the area.

The average price for the first batch of 231 units at the 1,154-unit Le Pont development is expected to be HK$11,073 per square foot, after factoring in discounts of as much as 16 per cent, Vanke Property (Hong Kong), a wholly-owned subsidiary of the developer, said on Friday.

Looming vacancy tax is prying long-held flats from Hong Kong developers who kept them locked away for future appreciation riches

The apartments, sized from 343 sq ft to 779 sq ft, are expected to fetch between HK$4.24 million and HK$8.43 million, or HK$9,878 to HK$13,043 per square foot.

“The selling price is even lower than that of some tiny public flats sold in the area,” said Jacky Yeung, a sales director at Centaline Property Agency’s Tuen Mun branch. He said transaction prices for small flats of less than 200 sq ft at the 30-year-old Leung King Estate, a public housing estate, were between HK$12,000 to HK$14,000 per square foot.

“Most young couples and singles have been forced to buy these old apartments, which are smaller than car parks, for less than HK$3 million, as nothing was available for this budget in the private residential market. Now, they will certainly return to private homes if the prices continue to fall,” he said.