Developer China Vanke’s Hong Kong unit sets prices for Ho Man Tin project 3 per cent above secondary market

First batch of 50 units at Vau Residence will be offered at an average price of HK$24,519 per square foot after a discount of as much as 16 per cent

Vanke will also offer cash rewards to the first 50 fully vaccinated buyers

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An artist’s impression of a lounge in Vau Residence. Photo: Handout

Published: 7:30am, 11 Jun 2021Updated: 7:30am, 11 Jun 2021

Vanke Holdings (Hong Kong), a unit of China Vanke, China’s third-largest developer, will launch a new residential project in Ho Man Tin at prices in line with those of the secondary market.

The price list for a first batch of 50 units measuring 209 sq ft to 388 sq ft at Vau Residence was launched on Thursday. The units will be offered at an average price of HK$24,519 (US$3,160) per square foot after factoring in a discount of as much as 16 per cent. Vanke has not announced a starting date for the sales yet. The development will have 165 units in total.

The prices announced on Thursday are 3 per cent higher than those of units at Seven Victory Avenue, a two-year-old development that is within walking distance of Vau Residence. The units at Seven Victory Avenue were selling for HK$23,820 per square foot, according listings on Centaline Property Agency’s website.

“It is common practice for developers to offer their first batch of units at competitive prices, to draw buying interest. Builders will increase prices for the subsequent batches, once they have generated strong sales,” said Sammy Po, chief executive of Midland Realty’s residential section.

The price list’s launch comes amid growing optimism that Hong Kong home prices will climb further this year as the city’s economy shows further signs of recovery. On Tuesday, US investment bank Goldman Sachs said it expected a 5 per cent rise in home prices this year, while Shih Wing-ching, Centaline’s founder, has forecast a 15 per cent increase.

“The launch prices have taken into reference the first and second-hand transaction market. We will not rule out the possibility of increasing prices for the following batches,” said Quincy Chow, Vanke Holdings (Hong Kong)’s executive director.