Wheelock reports brisk sales of Marini flats as developer shifts property launch to avoid Hong Kong’s protest-filled weekends
- 435 units out of the 500 on offer sold on Friday
- Buyers undeterred by protests in the city
Hong Kong developer Wheelock Properties said on Friday it had sold 435 units out of the 500 on offer at its Marini project in Tseung Kwan O, generating HK$3.3 billion (US$420.9 million) through what was the second-biggest sale of flats in the city since protests over a controversial extradition bill began about three months ago.
Wheelock said last week it would price the flats at 8 per cent below properties sold in the area just two months ago, and the strategy seems to have worked.
“About 70 per cent of the buyers are young people born in the 1980s and 1990s. Most of them bought one or two-bedroom flats,” said Sammy Po, chief executive of Midland Realty’s residential department.
More than 7,000 buyers registered to bid for the 500 units. The first 130 units were offered at an average of HK$14,997 per square foot, after a 21.5 per cent discount, while the average price for all 500 units was HK$15,895 per square foot. The 674-unit development is due to be completed in 2020.
Fung, a buyer who only gave his surname, said he had bought a one-bedroom flat for HK$5.8 million (US$739,458). “The social unrest will not affect my purchase, as I bought it for my own use,” he said.
Wheelock cuts price of project, sparks fears of quicker property market correction
Fung, who works in real estate, said he and his fiancée had failed to buy a flat during previous launches at projects nearby. He said he was not worried about the current headwinds. “I entered the market when I could afford to,” he added.
Leung, another buyer, bought a one-bedroom flat for about HK$6 million. “Genuine demand for flats will not change significantly, even with the social unrest in the city,” he said.
Property companies have reported positive sales results at projects for three consecutive weeks after lowering their prices.
Hong Kong’s sales agents face a bleak year end, with 8,000 jobs on the line
Billion Development & Project Management sold 570 units at its The Aurora development in Tsuen Wan over the previous two weekends, after pricing units 10 per cent lower than the nearest project in the neighbourhood. Wheelock sold all 504 units at its Grand Montara project in Lohas Park on launch on June 29, in the biggest single day for property sales since June.
“It is an encouraging sign. I believe all units at Marini could be sold out on launch day,” said Louis Chan, vice-chairman and chief executive for Asia-Pacific of the residential division at Centaline Property Agency.
Overall property transactions continue to suffer, however.
Prices of Hong Kong lived-in homes drop in July, in second month of retreat
The sales of new homes, old flats, shops, offices and industrial units all plunged by about 40 per cent to 6,211 deals in June, even before the protests hit retail sales and visitor numbers.
The prices of old homes dropped 0.1 per cent in July for a second straight month of declines, according to Hong Kong’s Rating and Valuation Department.
Investment bank Morgan Stanley said this week Hong Kong property prices would decline by 10 per cent through March next year as its economy contracts.
(Corrects headline and second paragraph in previous story)
