Families in Hong Kong confidently defy red flags about a housing downturn at the biggest flat sales in more than five years
About 68 per cent of Nan Fung Development’s 707 flats at its LP6 development in Tseung Kwan O were sold by 9.15pm. ‘Usually prices will rise again after correcting a little,’ one buyer said.
Hong Kong families bought 505 flats on the holiday Tuesday in the city’s biggest home sale in more than five years, confidently defying the latest red flags about a coming downturn in the property market.
Two developers offered a total of 857 flats. At the larger sale of the day, Nan Fung Development had by 9.15pm sold 67.9 per cent of 707 flats available at its LP6 development in Tseung Kwan O. For those 480 flats, the developer pulled in about HK$4.62 billion (US$591.6 million) on Tuesday.
Sales at the LP6 have gathered momentum because the first batch, at HK$15,304 per square foot on average, was offered at about 3 per cent below the overall average price at the Malibu, the previous sold phase of the massive Lohas Park development.
More than 4,100 buyers entered into the developer’s latest LP6 lottery, which means there were more than five potential buyers competing for each of the 707 flats.
“One buyer splashed out about HK$14 million for two flats,” said Sammy Po, chief executive of the residential division at Midland Realty. “Ninety per cent of the potential buyers this time had failed to get a flat in the previous [two] rounds.”