Homebuyers spring into action after developers slash prices, cutting inventory as market outlook darkens

Wing Tai Properties, the Hong Kong unit of Singapore developer Wing Tai Holdings, sold more than 90 per cent of its flats on offer at Tuen Mun on Sunday, with some units priced as low as HK$9,488 per square foot (US$1,210), reflecting the weakest level seen in the neighbourhood since 2015.

As of early evening, Wing Tai sold 108 out of the 118 flats in the first batch made available at the Carmel apartment project on Castle Peak Road in Tuen Mun. Prices for the units ranged from HK$3.32 million to HK$11.94 million, while the average price for the units reached HK$11,517 per square foot.

The lowest price on a per square foot basis was HK$9,488, or equivalent to new home prices in the neighbourhood that date back to 2015, according to the developer. The per square foot price was also 30 to 40 per cent lower when compared with other similar housing projects in the area.

On Saturday, Sun Hung Kai Properties, Hong Kong’s biggest home developer, sold all of its flats on offer at Ma Tau Kok after discounting prices by 50 per cent on average, compared with a similar project in the same neighbourhood. Prices for the units ranged from between HK$5.4 million and HK$7.9 million, or HK$17,621 to HK$19,193 per square foot.

The weekend sale shows how Hong Kong developers have had to slash prices to clear their inventory. Declining prices are further evidence that the housing bull market has drawn to a close, following a downturn in August after a 28 month spiral in prices.

A combination of government policies, higher mortgage rates and new supply have pushed the residential market to a tipping point, according to analysts.