Bumper weekend for Hong Kong property sales as buyers flock to snap up flats at Henderson’s The Henley in Kai Tak
- Henderson sold some 70 per cent or 134 of 196 units on offer at phase one of The Henley, at the close of sales on Sunday
- Some 3,063 people registered their interest, or nearly 16 buyers for each available unit
Hong Kong buyers showed strong appetite for new flats for a second day in a row, encouraged by a steep economic rebound as investors look to deploy funds amid improving sentiment.
“This is pretty good sales results,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division. “Sentiment is supported by expectation that low interest rates will stay low, ample funds looking for investments, the local pandemic being under control, a return of economic growth and lower unemployment.”
Hong Kong ended six consecutive quarters of economic decline caused by the coronavirus pandemic, posting a 7.8 per cent growth in the first-quarter, the strongest in 11 years. It was led by export and government spending. Unemployment fell to 6.8 per cent in March from 7.2 per cent in February.
Henderson’s 479-unit in phase one of The Henley is located on the site of the city’s former airport, near the East Kowloon business district under development.
Some 60 per cent of the units were bought by end users and 40 per cent by investors, compared to the 30 per cent investors at other launches, Po noted. This is due to its prime location, with many units enjoying sea views, which gives it better price appreciation potential, he said.
The one to three-bedroom flats, ranging from 274 to 889 square feet, were priced at an average HK$27,080 per sq ft after a discount of up to 5 per cent.
Prices of the three-phase project, due for completion in January next year, are around 11 per cent higher than another nearby project sold in February, agents said.
Some 3,063 people registered their interest, or nearly 16 buyers for each available unit.
Three of the 12 luxury units offered separately on Saturday via bidding without price guidance were sold for a total of HK$141 million, Henderson said. They include units with rooftop, balcony or garden space and sea views.
One unit was sold for HK$83.5 million or HK$61,888 per sq ft, some 20 per cent higher than the previous record in Kai Tak, Po said.
The latest Centa-City Leading Index, reflecting transactions of lived-in homes, rose 1.1 per cent month on month to 183.25, a 19-month high. It is just 3.8 per cent shy of its historical high seen in mid-2019.
Although new home sales transactions fell by a third to 1,037 deals in April from March, Derek Chan, Ricacorp Properties’ head of research, said on Thursday that multiple new project launches and recent good sales results could see around 1,500 deals in May.
Ricacorp expects Hong Kong home prices to rise by 10 per cent this year.
US ratings agency S&P Global Ratings has projected a rise of up to 5 per cent, citing a chronic shortage of land and housing supply and consistently low interest rates.
