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Hong Kong property
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Hong Kong developers dangle discounts to whet appetite in market cratering from coronavirus outbreak, protests

  • China Evergrande, Wheelock and Henderson Land deepen price discounts at some launches, among the earliest to test housing demand
  • Other developers have boosted commission for agents to help push unsold stock

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Empty queue at the second batch of China Evergrande's Emerald Bay flats in Tuen Mun on March 7, a typical sight at recent property launches as Hong Kong’s economy suffers from coronavirus outbreak and protests. Photo: Xiaomei Chen
Lam Ka-sing
Some Hong Kong developers are dangling more discounts to attract buyers in the first few home launches since the coronavirus outbreak. The reception in the coming weeks could signal if the market has further room to slide.
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China Evergrande widened the discount at its Emerald Bay project in Tuen Mun on Saturday to 14 per cent from its list price, plus a HK$20,000 rebate. That is up from 11 per cent at the launch of the same project last year. Buyers took up only 49 of the 141 flats on offer.

Wheelock Properties is reducing the prices for 101 flats at Ocean Marini Phase 9C in Lohas Park it plans to put on the market in near future, based on its disclosure. The developer is cutting them by 2 to 3 per cent from the levels on units at Marini and Grand Marini projects it launched in the third quarter last year.

“Given the [dismal] market outlook, developers may have to lower listed prices when the bulk of stock comes up for sale in the second half,” said Nelson Wong, head of research for Greater China and Hong Kong at JLL. “A deeper cut in prices is possible, depending on the duration and severity of the coronavirus outbreak.”

Henderson Land Development is giving out a larger discount at its Eden Manor project in Sheung Shui on Thursday. The 28 flats will be cost 16 per cent below the list price, making them cheaper than the level at its September launch, the company said.

Sun Hung Kai Properties will launch the second phase of its Wetland Seasons Park in Tin Shui Wai later this month, making these four developers among the earliest to wade into the market since the coronavirus outbreak from January cast a pall on the global economy and triggered a stock market sell-off.

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Hong Kong’s economy, already reeling from social unrest in 2019, could contract again in 2020, the government warned when unveiling a record expansionary budget last month. It shrank 1.2 per cent last year.

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