Sun Hung Kai to subdivide Tuen Mun apartment block into smaller units to lure first-time buyers
‘The developers prefer to build smaller size units as they know that is what the market can afford,’ said Denis Ma, head of research at JLL
Sun Hung Kai Properties plans to boost the total number of flats at its project in Tuen Mun to 1,326 units by cutting the unit size area by 64 per cent, according to a government document.
Flats will be reduced to 468 square feet, from the original 1,287 square feet each, at the Avignon phase two development at So Kwun Wat, according to a document filed to the Town Planning Board (TPB) on Friday.
The original approved plan for the development was for 241 flats in 2013.
The latest plan, made up of seven blocks of 11 storey to 20 storey residential buildings with a total gross floor area of 620,000 square feet, is still subject to the approval of the planning board.
“The developers prefer to build smaller-size units as they know that is what the market can afford. In addition, the vacancy tax will also encourage builders to construct flats with higher marketability,” said Denis Ma, head of research at JLL.
Prior the government’s announcement of introducing a vacancy tax, he said developers would hold the large flats until they could achieve higher prices.