Hong Kong’s first residential project sale of the year released with steep price discounts
- The first batch of flats at The Regent in Tai Po was released on Thursday at an average unit price of HK$12,800 per square foot
- Property developers brace for deluge of supply in coming months that could force further price cuts
Mainland developer China Overseas Land and Investment unveiled aggressive discounts at its new residential flats released in Tai Po on Thursday, in an effort to fend off competition amid rising supply and concerns of a spreading malaise in the city’s housing market.
In the first property sale of the new year, the developer priced the first 324 units at The Regent starting from HK$10,688 (US$1,364) per square foot after discounts.
The average unit price was HK$12,800 per square foot, about 32 per cent lower than a nearby project launched five months ago. The St Martin by Sun Hung Kai Properties, about a five-minute drive away, sold for an average HK$18,698 per square foot in July, shortly before the city’s 28-month bull run in house prices ended.
“Now only a low price can grab attention,” said Thomas Lam, an executive director at Knight Frank.
“Mainland developers tend to want cash as soon as possible. To achieve that, a larger discount seems to be the only way.”