Chinachem’s low price strategy draws more interest among competing Tsuen Wan projects
Hong Kong developers found that a lower price strategy worked best over the weekend as two major projects in Tsuen Wan competed for buyer interest.
Chinachem Group’s Parc City, which was priced an average of 14 per cent below Cheung Kong Property’s Ocean Supreme, received stronger buying interest.
Chinachem said it will start sales of 521 units at Parc City on Friday after more than 10,000 prospective buyers registered interest over the weekend, with registration to continue until Wednesday.
“We did not expect the response would be so strong,” Ng Shung-mo, director of sales at Chinachem, said on Sunday.
Wu said the units to be launched Friday will have an average price of HK$15,271 (US$1,951) per square feet. Prospective buyers who registered before Wednesday will go into a lucky draw on Thursday to determine when they can select their flat.
CK Property sold more than 60 units at Ocean Supreme, adjacent to Tsuen Wan West Station on the West Rail line. The units cost an average of HK$18,097 per square foot after factoring in discounts of up to 22 per cent. The developer offered 160 units during the weekend and has sold 1,700 units at the project in the past three months.
“It is inevitable to see sales of Ocean Supreme affected by Parc City due to the price differences,” said Louis Chan Wing-kit, Centaline Property Agency’s Asia-Pacific chief executive.
“When you can get the same size flat without a sea view at Parc City for about HK$2 million less than the one with sea view at Ocean Supreme, many buyers would consider the lower priced ones,” Chan said.
“However, it should also be noted that Parc City is a new offering while Ocean Supreme has been on the market for three months. In addition, Ocean Supreme is for the more premium market which also has its supporters.”
Chan said the sales showed there was still strong buying interest in the property market, particularly for new projects as they can offer lower mortgage rates than second hand flats.
“Many people couldn’t afford to pay the high initial down payment for a second hand property so they stick to new flat sales which enjoy a better mortgage ratio,” he said.
Sammy Po, chief executive at Midland Realty’s residential department, said the most popular units at Ocean Supreme are two-bed room flats priced at about HK$8 million each.
“The sales during the weekend show buyers like the flats at about HK$ 8 million,” Po said.
Chinachem on Wednesday released the price list for the first 191 units at its Parc City, with an average price of HK$14,449 per square foot after factoring in up to 20 per cent discount.
That came a day after CK Property released 207 units at Ocean Supreme, mostly on higher floors, at an average discounted price of HK$18,097 per sq ft.