Sun Hung Kai Properties , Hong Kong’s biggest developer by market cap, has priced its latest project in Tuen Mun nearly 40 per cent higher than new launches in the New Territories, paying no heed to the third wave of coronavirus outbreak currently sweeping the city. The developer has priced the first batch of 88 flats at its Regency Bay residential development at HK$17,377 (US$2,241) per square foot after discount, the highest among new projects launched in the district recently. Prices start at HK$4.68 million after discounts for a flat measuring 261 sq ft. SHKP has yet to announce the sales launch date of the flats. “The developer is testing waters [as] it is the first new project priced amid the third wave of coronavirus outbreak,” said Louis Chan, vice-chairman of Asia-Pacific and chief executive of residential division at Centaline Property Agency. “The pricing of the first batch is aggressive.” SHKP’s selling price per square foot is 38.5 per cent higher than the HK$12,548 per square foot for Oma by the Sea launched by Wing Tai Properties in May this year. It is also 14.6 per cent higher than the HK$15,166 per square foot for its own Mount Regency phase two launched in June last year. Hong Kong actor Nicholas Tse’s former home sells for US$1.8 million loss Meanwhile, used homes in Tuen Mun average HK$11,738 per square foot, about 48 per cent cheaper than Regency Bay, according to Centaline. The price reflects the seaviews from the project, said Amy Teo, general manager of Sun Hung Kai Real Estate Agency. She added that she was not worried about the sales as many of the developments in Tuen Mun are old. SHKP’s premium pricing strategy is an extension of CK Asset’s Sea to Sky project in Lohas Park, which proved successful as almost all the flats were sold. Wheelock Properties, however, could not replicate the success, with buyers picking up slightly more than half the units on offer at Koko Hills in Kowloon East in the first phase. But the success of SHKP’s strategy remains to be seen as Centa Valuation Index, which reflects banks’ sentiment on the housing market, softened 6.9 points to 46.09 this week. The lower the reading, the more bearish banks become of prospects in the real estate industry, and are more likely to cut their valuations of mortgaged property. Before SHKP launches Regency Bay, CK Asset and China Evergrande will be selling 180 flats at Seaside Sonata in Sham Shui Po and 83 flats at The Vertex in Cheung Sha Wan, respectively, on Friday. “Although there is recovery in the residential market, the uncertainties in the property market remain,” said Joseph Tsang, chairman and head of capital markets at JLL in Hong Kong. “The city is now facing the third wave of Covid-19 infection and decreasing capital inflow from mainland China into Hong Kong’s real estate market. Economic recession and rising unemployment rate will weigh on housing prices.” Tsang added the pent-up demand that supported property sales in the last few months has gradually faded, creating a fresh challenge for developers, especially with the pandemic raging now. According to JLL, Hong Kong’s home prices are unlikely to grow at rates seen after the 2008 financial crisis because of the Covid-19 outbreak, contracting economy, rising unemployment, and tightened capital control from mainland China. The property consultancy now expects mass housing prices to drop 5 to 10 per cent this year and luxury housing prices by 10 to 15 per cent.