New World posts a third sell-out weekend in Tai Wai as buyers rush to park their money in flats amid era of low interest rates

New World Development said it sold all 337 flats at Phase II of The Pavilia Farm project in Tai Wai in the New Territories, for a haul of HK$3.4 billion (US$438 million) within nine hours

Across town at Kau To Shan, CK Asset Holdings saw a cooling in buyers’ enthusiasm, selling only 10 flats and four houses a day earlier at the upmarket El Futuro project, out of 42 flats and 12 houses offered

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Homebuyers queuing up at New World Development’s sales office in Tsuen Wan for the second sale of The Pavilia Farm in Tai Wai on October 26, 2020. Photo K.Y. Cheng

Published: 8:41pm, 7 Nov 2020Updated: 10:45pm, 7 Nov 2020

Hong Kong’s homebuyers packed a real estate developer’s showroom over the weekend to snap up hundreds of new flats, as assurances of low interest rates by monetary authorities drove them to seek sanctuary in fixed assets.

New World Development said it sold all 337 flats at Phase II of The Pavilia Farm project in Tai Wai in the New Territories, for a haul of HK$3.4 billion (US$438 million) within nine hours.

The weekend’s haul puts New World on track to generate HK$10 billion in receipts from The Pavilia Farm, after three successful rounds of sales since its launch four weeks ago, a record for the developer in a down-market year weighed down by a global coronavirus pandemic and the city’s worst recession in history.

“The Pavilia Farm is a mass market project that attracted a lot of registrations of intent,” said Sammy Po, chief executive of the residential division at Midland Realty. “Many buyers were turned away” by the limited offers in each launch, he said.

New World Development's residential project The Pavilia Farm, atop the Tai Wai subway station in Hong Kong’s New Territories on 30 September 2020. Photo: Xiaomei Chen

New World raised today’s average price by 5 per cent to HK$19,800, compared with the first batch. With sizes from 264 square feet to 753 sq ft, flats started from HK$5.73 million for the smallest units. Still, that did not deter buyers, who snapped up a third of the offerings within the first two hours, with a customer forking out HK$29 million for two three-bedroom units, according to the developer’s sales and marketing director Akan Wong.

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