T-Plus, the residential project in Tuen Mun made up of micro homes smaller than a car parking space, said on Friday it will suspend sales with immediate effect, without providing a reason for the halt. The project, co-developed by mainland developer Jiayuan International Group and local developer Stan Group, announced the freeze after having sold just two units in the 356-unit project since its launch on November 29. On Thursday, AVA 228 a micro-home project in Sham Shui Po debuted its price list for an initial batch of 50 units, indicating a double-digit percentage discount to flats on sale at T-Plus. The smallest unit on offer at AVA 228, measuring 151 sq ft, was priced at HK$18,563 (US$2,365) per square foot, or about 15 per cent lower than the tiniest flat released at T-plus, measuring 131 sq ft, which was offered at HK$21,756 per square foot. “No one wants to buy tiny homes at this stage. The next step for such cubical spaces, that are not designed for home staying, has to be lower prices,” said Alvin Cheung Chi-wai, associate director at Prudential Brokerage. “When one developer of such units began to offer small discounts, others have to follow and make even larger and painful [price] slashing.” Market observers expect that developers of micro flats – or homes in layouts of less than 200 sq ft – will face fierce price competition to cut prices amid the slowdown of the city’s housing market. “A price war among developers, particularly those offering small apartments, is inevitable amid the current softened market,” said Joyce Kwok, head of Hong Kong property research at Nomura. More than 521 among 1,549 such micro homes built since 2016 remained unsold by the end of 2018, according to data by Dataelements, which monitors the sale of new flats in the city. “You have to be cheaper than other developers offering similar products, otherwise buyers will walk away,” said Derek Chan, the head of research at Ricacorp. AVA 228 features 160 units with sizes ranging from 129 sq ft to 249 sq ft, while T-Plus, features 356 units, of which 276 range in size from 128 sq ft to 178 sq ft. Upcoming micro-home launches includes China Evergrande Group’s project in Tuen Mun with some as small as 135 sq ft, Henderson Land Development’s The Vantage in Hung Hom with the smallest fetching 170 sq ft and The Consonance in North Point, offering 48 studios with sizes between 175 sq ft to 200 sq ft.