Homebuyers take up two-thirds of Sun Hung Kai’s Yoho Hub flats in Yuen Long as recovery, rate outlook underpin demand

More than two-thirds of the 325 units had been sold by 7pm local time; an industry executive expects take-up rate to surpass 90 per cent

Yoho Hub, with 1,030 units in total, is the most expensive of new developments in the Yuen Long neighbourhood

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The Yoho Hub housing complex in Yuen Long, Hong Kong on December 17. Photo: Jonathan Wong

Published: 5:44pm, 26 Dec 2021Updated: 7:13pm, 26 Dec 2021

Sun Hung Kai Properties, Hong Kong’s biggest developer, enjoyed a brisk festive weekend home sales as signs of economic recovery encouraged buyers to pick up more than two-thirds of the units in its latest housing project.

The developer sold 220 of the 325 flats on offer at The Yoho Hub as of 7pm local time, according to property agents. The project is located in Yuen Long, New Territories, a 40-minute train ride from the city centre. The take-up rate could surpass 90 per cent by the end of the day, an industry executive said.

“That reflects good demand,” said Sammy Po Siu-ming, chief executive officer of Midland Realty’s residential division, who expects about 300 units to be sold. “The project is welcome because it’s close to the railway station and has shopping malls nearby.”

Hong Kong’s robust recovery from Covid-19 appears to have injected optimism, with the city’s unemployment rate falling to the lowest level since the pandemic outbreak in early 2020. Homebuyers also shrugged off concerns about the negative wealth effect as the stock market rebounded over the past week.

Some buyers may be bringing forward their purchases before a possible increase in borrowing costs as the US started dialling back its monetary stimulus and plotted rate increases from next year. Hong Kong conducts its policy in lockstep with the Federal Reserve’s actions.

The Sun Hung Kai project, sitting atop the Yuen Long railway station, is the most expensive for any new developments in the neighbourhood, based on the average selling price of HK$19,899 (US$2,551) to HK$21,700 per sq ft in different launch batches.

A general view of the Northern area of the New Territories from Kwun Tung. Photo: Martin Chan

The flats available on Sunday come in sizes ranging from 325 to 1,036 sq ft, starting from HK$6.85 million to as high as HK$15.55 million, after factoring in a 12 per cent discount. The cheapest of the lots is a 325-sq ft one-bedroom unit on the sixth floor of Block One.