Centralcon’s Sha Tin housing project launch gets off to a slow start as buyers hold out for better options amid robust supply

A weekend property sale got off to a slow start in Hong Kong, as homebuyers balked at flats offered by lesser known developers in a market where thousands of new flats are waiting to launch this year.

Centralcon Properties, a local developer, managed to sell 271 flats, or 72 per cent of the first 374 units earmarked for sale at The Arles in Sha Tin on Saturday, according to sources. Another 162 flats at the same project are scheduled for sale on Sunday.

The Arles, located near the Fo Tan subway station in eastern New Territories, is a crucial test of whether Hong Kong’s residential property bull run can maintain its momentum in October. It’s also the first sales launch in the area since Hong Kong’s Chief Executive Carrie Lam Cheng Yuet-ngor unveiled her plan to build a Northern Metropolis close to the southern border of mainland China, where 2.5 million people may live within 20 years.

Expectations about the Northern Metropolis have given homebuyers more options and stronger bargaining power, giving them the ability to wait for better offers, said Midland Realty’s residential division chief executive Sammy Po Siu-ming.

The first batch of flats at The Arles were priced at an average of HK$20,265 (US$2,605) per square foot, about 5 per cent cheaper than New World Development’s Pavilia Farm project at the Tai Wai station nearby.

When fully completed in March 2023, The Arles will comprise 1,335 apartments of between 228 and 947 square feet, selling for between HK$6.17 million and up to HK$23.5 million after factoring in a 15-per cent discount, as is the industry’s norm.