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Potential homebuyers line up at sale office in Tsuen Wan, for New World's 396 units at The Pavilia Farm on 22 November 2020. Photo: Jonathan Wong
Business

New World’s latest property launch sells out as Hong Kong’s homebuyers return in droves amid buoyant sentiments

  • The developer of The Pavilia Farm Phase III in Tai Wai sold all 331 flats before 8pm, with 27,000 bids received
  • Unsuccessful buyers today may be able to bid for the next batch of property released at a later date
Weekend Property
Lam Ka-sing
Lam Ka-sing
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New World Development has reported another sell-out property launch, as Hong Kong’s real estate investors piled into the city’s biggest weekend sale since November, their confidence boosted by a tapering coronavirus situation in the city.
The developer of The Pavilia Farm Phase III in Tai Wai sold all 331 flats on offer before 8pm for HK$4.37 billion (US$563.4 million) in sales revenue. A record 27,000 registrations of interest were received through New World’s smartphone application, or 82 bids for every available flat on average. Unsuccessful buyers today may be able to bid for the next batch of property released at a later date.

“The economy is gradually improving, with the gross domestic product rising and unemployment rate falling,” said Midland Realty’s residential division chief executive Sammy Po, adding that he expects today’s offerings to “definitely sell out.” “The pandemic is also beginning to be under control. These are beneficial to the overall housing market.”

The brisk transactions at The Pavilia Farm put Hong Kong’s residential property prices on track to set a record and race ahead of the tentative recovery in the city’s economic growth pace. Hong Kong could see more than 2,500 new homes sold and up to 6,000 lived-in homes changing hands this month, Po said. Homes prices could rise 2 per cent this month and break records soon, he added.
New World Development's residential project atop Tai Wai subway station on September 2020. Photo: Xiaomei Chen
The Pavilia Farm, a joint project with Hong Kong’s subway operator MTR Corporation, features 3,090 apartments of various sizes. Up to 2,100 units in phases I and II had been sold since October 2020. Phase III, due for completion in June 2023, comprises 892 flats. The units on offer today started at 310 square feet, going up to 1,022 sq ft (95 square metres), priced from HK$6.7 million to HK$24 million.

The average price in today’s sale rose to HK$19,999 per square foot even with up to 20 per cent in discounts, 0.8 per cent higher than Phase II last October and 6 per cent higher than Phase I.

There were 54 bulk purchases, involving buyers who snapped up more than one property each, the biggest deal being one valued at HK$69 million, agents said.

The recent ease in pandemic and anticipation for border reopening are heating market sentiment and adding to buyers’ confidence, said Louis Chan, Asia-Pacific vice-chairman and chief executive of the residential division at Centaline Property Agency, adding that the robust demand could accommodate a price increase of between 3 and 5 per cent in the upcoming launches.

“The Pavilia Farm [has broken] a 20-year record for subscriptions for the second time,” said New World’s chief executive Adrian Cheng. “The group will develop more patented products to deliver sophistication and convenience to residents, satisfying their need for a higher quality and healthier lifestyle.”

The project is also located with proximity to public transport and amenities such as shopping centres. The lack of new property developments in the neighbourhood, reasonable pricing and robust rental yields are all contributing to The Pavilia Farm’s success, said Po.

This article appeared in the South China Morning Post print edition as: Flats launch sells out as confidence increases
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