Hong Kong homebuyers snap up Uptown East flats worth US$179 million in Kowloon Bay, as market rebounds after curbs removal

Some 238 of 336 units available at Uptown East in Kowloon Bay, worth about HK$1.4 billion, found buyers as of 6pm on Sunday
The units range from studios to two-bedroom flats, with prices from HK$3.73 million to HK$8.89 million after discounts

Hong Kong property

Enoch Yiu

Published: 8:32pm, 17 Mar 2024

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Hong Kong homebuyers on Sunday rushed into the market to snap up most of the new flats on sale in Kowloon Bay, as developers continued to offer discounts to meet the pent-up demand unleashed by the government’s abolition of purchasing curbs.

Wong Sun Hing and partner New World Development sold 238 of the 336 flats at their Uptown East project as of 6pm, recording sales worth about HK$1.4 billion (US$179 million), according to the developers. Agents expect the project to sell out by more 80 per cent at the end of the sales period tonight.

This marked the second major new property offering since the government removed property cooling measures and the Hong Kong Monetary Authority relaxed its mortgage policies on February 28.

The first batch of flats on sale include studios and two-bedroom units, ranging in size between 278 and 561 square feet (25.8 and 52 square metres). The units were priced from HK$3.73 million to HK$8.89 million after discounts of up to 23 per cent. Another 12 flats measuring from 560 sq ft to 750 sq ft are on offer through tender until Monday.

Uptown East, a residential project developed by Wong Sun Hing and partner New World Development, seen under construction on March 15, 2024. Photo: Xiaomei Chen

The removal of curbs last month and the roll-out of policies to attract tourists are expected to boost the local economy, according to Wong Sun Hing group managing director Connie Wong Wai-ching, who indicated that 80 per cent of buyers on Sunday were owner-occupiers and Hong Kong residents.

“The outlook is very positive for Hong Kong’s economic growth and the property market,” Wong said.

Uptown East comprises two 40-floor towers with 807 lats, and a three-storey shopping centre. The units include studios and three-bedroom flats, with saleable areas ranging from 235 sq ft to 3,415 sq ft.

Buyers began queuing up at the developers’ Tsuen Wan sales office hours before the doors opened. As many as 6,899 expressions of interest were received, each in the form of a HK$100,000 cheque deposit, or an average of 20 bidders for every flat available.

Wong Sun Hing group managing director Connie Wong Wai-ching at the Uptown East sales office on March 17, 2024. Photo: May Tse

The strong sales performance of Uptown East reflects how property transactions have surged since the Hong Kong government scrapped the city’s decade-old curbs last month.

More than 2,300 transactions involving 106 residential projects were recorded between March 1 and 16, according to Louis Chan, vice-chairman and CEO (Residential) for Asia-Pacific at Centaline Property Agency.

“The removal of property cooling measures helped the property market recover and the trend will continue,” Chan said. “Many Hong Kong residents have high levels of savings, and they would like to buy more property for self-use or as investments for higher returns than bank deposits.”

Uptown East’s sales on Sunday saw eight big spenders taking part, each snapping up more than one unit, the developers said in a statement. They may consider launching more units to meet the market’s strong demand.

An artist’s impression of Uptown East, a residential project of Wong Sun Hing and partner New World Development. Photo: Handout

“The location [of Uptown East] is good, as I have always wanted to buy a flat in Kowloon,” a first-home buyer surnamed Poon said. “The price is very reasonable, cheaper than other projects.”

Poon, who is buying a flat for his own use, said he was able to afford the purchase price only after the city’s monetary authority relaxed its mortgage policies.

“The property market is unlikely to fall further in Hong Kong because there is strong demand in the market,” he said. “I have seen some mainland [Chinese buyers] at this project. Their purchases will support the property market.”

Homebuyers purchased 238 of the 336 flats on offer at the Uptown East project in Kowloon Bay on March 17, 2024. Photo: May Tse

Property transactions in Hong Kong typically surge after government curbs are relaxed, according to an analysis of the city’s monthly sales data since 2010. Strong sales have been reported elsewhere after the latest policy adjustment.

Belgravia Place in Cheung Sha Wan sold out on March 3, when its 138 flats became the first major launch after Financial Secretary Paul Chan Mo-po scrapped the curbs on February 28.

The measures withdrawn included the Buyer’s Stamp Duty that targeted non-permanent residents and the New Residential Stamp Duty for second-time purchasers. Homeowners will also no longer be required to pay a Special Stamp Duty if they sell within two years.