First Kai Tak runway residential project priced 13 per cent cheaper to ‘activate sales’
- First batch of 212 units at One Victoria is priced at an average of HK$22,977 per square foot
- Sales are expected to start early next month
“The project has a lot of units, so the prices were set more attractively to attract registrations of intent,” said Sammy Po Siu-ming, CEO of Midland Realty’s residential division. The project also had to compete with leftover stock in the area, he added.
The launch of the price list comes amid a boom in Hong Kong’s housing market. Residential property transactions have surged by about 35 per cent in the first half of this year – the highest level since the second half of 2012 – to more than 38,500 deals, according to Midland Group. Transaction volumes have also skyrocketed by about half to about HK$366 billion, the highest level since the first half of 1997.
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There was room for prices to increase during launches of subsequent batches, said Tony Yau Wai-kwong, director and general manager of China Overseas Property, a unit of the developer.
The current batch of One Victoria units is sized from 329 sq ft to 643 sq ft, with prices starting at HK$6.56 million after discounts. Sales are expected to start early next month, at the earliest.
“The first batch of units is likely to be sold in one go,” said Louis Chan, Centaline Property Agency’s vice-chairman and CEO of residential in Asia-Pacific.
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The project’s pricing can definitely “activate sales”, as it is about 5 per cent lower than that of lived-in homes in the area, and about 15 per cent lower than that of leftover stock from new projects there, Chan said.
The land price of One Victoria at about HK$13,500 per square foot in December 2018 was about 10 per cent lower than the about HK$15,100 per square foot that Henderson paid for the land where The Henley is coming up. Henderson bought the land from HNA Group in 2018.
One Victoria is about a 45-minute walk from the Kai Tak Station at the moment. It is also likely to be surrounded by construction sites.
With the opening on Sunday of the Tuen Ma Line, which connects the West Rail Line and the Tuen Ma Line Phase 1 and includes the Kai Tak Station, the Kai Tak district will “officially enter the harvest season” and mature in terms of community development, said Centaline’s Chan. As the first waterfront project on the runway, One Victoria will offer good views, he added.
