Evergrande’s Emerald Bay flats flop in their third weekend sale in three months as homebuyers ignore developer’s discount

China Evergrande sold 41 flats, or 12 per cent of the 335 units at the Emerald Bay project in Tuen Mun as at 8:30pm

Latest sales come a day after city relaxes curbs on social distancing as Covid-19 outbreak eases

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Sales agents outnumber homebuyers at the sales office of China Evergrade’s Emerald Bay project at Billion Plaza in Cheung Sha Wan on May 9, 2020. Photo: Xiaomei Chen

Published: 7:09pm, 9 May 2020Updated: 10:29pm, 9 May 2020

China Evergrande’s weekend sale of its Emerald Bay flats in Tuen Mun has flopped for the third time in as many months, as Hong Kong’s homebuyers shunned its meagre discounts in anticipation of further price declines.

The developer managed to find buyers for 41 flats, or 12 per cent of the 335 units on offer at 8:30pm, according to sales agents.

In March, the developer sold 49 of 141 flats when it launched the project in the midst of the city’s coronavirus outbreak, at a time when social gatherings – including the viewing of real estate – was curtailed. Last month, Evergrande sold only 6.7 per cent of the second batch of Emerald Bay flats. Since then, Hong Kong’s outbreak came under control, with no new infections recorded for the 13th time in the past 20 days.

“The developer has launched many rounds of this project previously, so it is no longer as fresh to homebuyers compared to the launch of a new project,” said Sammy Po Siu-ming, chief executive of the residential division at Midland Realty, adding that Emerald Bay is selling in line with expectations.

Evergrande’s launch is the biggest weekend offer of apartments by a single developer since business and social life was put on hold in Hong Kong in mid-January, as the local government tried to contain the coronavirus outbreak. As of Saturday, the disease had sickened 1,044 people in the city and claimed four lives. Locally transmitted cases, a measure of whether the disease is under control, have not been reported for 20 consecutive days.

Hong Kong’s home prices may decline by between 10 per cent and 20 per cent this year amid the slumping economy and expected glut of projects, according to property consultants. Greater job insecurity will decrease desire among prospective homebuyers, they said.

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