Hong Kong homebuyers enter the market, as developers dangle discounts to end nine weeks of slumping property sales

Sun Hung Kai Properties (SHKP) managed to sell 162 of 200 flats offered in the first batch of the second phase of its Wetland Seasons Park project in Tin Shui Wai as of 9:30pm after cutting prices by up to 18 per cent

Easyknit International found buyers for eight of 26 units at The Ayton in Kowloon with discounts of as much as 8 per cent, sales agents said

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Homebuyers lining up for phase two of Wetland Seasons Park at International Commerce Centre, Kowloon Station on May 23, 2020. Photo: Jonathan Wong

Published: 9:00pm, 23 May 2020Updated: 10:56pm, 23 May 2020

Hong Kong’s homebuyers came off the sidelines to nibble at more than 200 flats offered at two projects, as developers slashed prices to end nine consecutive weeks of sales flops.

Sun Hung Kai Properties (SHKP), the city’s most valuable developer, managed to sell 162 of 200 flats, or 80 per cent of units offered in the first batch of the second phase of its Wetland Seasons Park project in Tin Shui Wai as of 9:30pm after cutting prices by up to 18 per cent. Easyknit International found buyers for eight of 26 units at The Ayton in Kowloon with discounts of as much as 8 per cent, sales agents said.

The sales result, which still pales in comparison with launches six months ago, is a minor cause for relief among developers, as they struggle to find customers to commit to big-ticket financial commitments during Hong Kong’s worst recession in decades. The city’s property sales flopped for the sixth time in nine weeks last weekend, as investors find themselves spoilt for choices while the residential real estate market slumps under a combination of a supply glut and recessionary woes.

“There is increased appetite to buy Hong Kong property,” said Victoria Allan, founder and managing director of Habitat Property Limited in Central. “With everybody unable to travel, it’s giving [buyers] more time to focus on the market and take advantage of some discounts.”

SHKP dangled discounts of up to 18 per cent to keep the average price at Wetland Seasons Park at HK$11,368 (US$1,466) per square foot, with apartments in the 699-unit complex ranging from 416 to 721 square feet. The cheapest flat was a 499-sq ft unit at HK$4.9 million.

“Wetland Seasons Park continues to be popular [among] buyers, especially younger customers, who make up about 80 per cent of the buyers,” said Sammy Po Siu-ming, chief executive of Midland Realty. “About 40 per cent of the buyers are investors.”

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