Hong Kong developers slash home prices by up to 20 per cent to kick some tempo back into the downbeat property market

Wing Tai prices flats at OMA OMA in Tuen Mun at HK$12,463 per sq ft, 20 per cent cheaper than rival Sun Hung Kai Properties’ flats at Mount Regency phase two

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Chung Chi-lam (centre), executive director at Wing Tai Properties, on Thursday announces the launch of the OMA OMA residential development in Tuen Mun. Photo: Handout

Published: 8:00am, 21 Jun 2019Updated: 4:44pm, 21 Jun 2019

Hong Kong developers, taking advantage of the calm that has returned to the city, on Thursday launched projects at prices that undercut rivals by up to 20 per cent, hoping to attract buyers who have adopted a cautious approach.

Wing Tai Properties said it would sell flats at OMA OMA in Tuen Mun at an average price of HK$12,463 per square foot, some 20 per cent lower than Sun Hung Kai Properties’ Mount Regency phase two, which is also in the same area. The city’s largest developer is putting 130 units at Mount Regency for sale on Saturday.

Wing Tai is yet to announce a date for the sales launch.

Meanwhile, Wheelock Properties released the price list for 101 units at the Grand Montara in Lohas Park, Tseung Kwan O, at an average of HK$13,999 per square foot – 5 per cent lower than flats priced in the first phase of the Montara in April. The price is also 15 per cent lower than the Mount Regency, where flats were priced at the average of HK$15,761 per square foot.

The developers are hoping to attract homebuyers with the discounted prices as investors have developed cold feet, staying away from property launches in recent weeks because of the demonstrations and the unresolved US-China trade war. On Sunday, Hongkongers took to the streets for a third time in a week to demand that Chief Executive Carrie Lam Cheng Yuet-ngor withdraw the controversial extradition bill and resign.

Prospective buyers are seen at Wheelock Properties’ sales centre at Harbour City in Tsim Sha Tsui. The builder had put up 500 flats on sale at its Montara development in Lohas Park on May 4, 2019. Photo: Edmond So.

“Sentiment has changed. To win over buyers, developers dare not set prices too aggressively,” said Sammy Po Siu-ming, chief executive of the residential division at property agency Midland Realty.