Hong Kong property

Sales of new flats strong as parents help their children onto Hong Kong’s property ladder

PUBLISHED : Monday, 30 October, 2017, 6:46am
UPDATED : Monday, 30 October, 2017, 10:39am

Hundreds of people eager to get a foothold in the world’s most expensive property market rushed to snap up flats at two new projects in Hong Kong at the weekend.

Many of them were young buyers looking to get on the first rung with financial support from their parents.

By 5pm on Sunday, 124 of 131 new units at Sun Hung Kai Properties’ Wings at Sea II development in Tsueng Kwan O had sold out. That followed the complete sell-out of all 68 flats at Cheung Kong Asset Holdings’ My Central development in Sheung Wan in the short space of three hours on Friday.

Half of these young would-be buyers will need financial support from their parents
Sammy Po, Midland Realty

Sammy Po, chief executive at Midland Realty’s residential department, said 40 per cent of the firm’s registered buyers for Wings at Sea II were young people.

“Half of these young would-be buyers will need financial support from their parents,” he said.

More than 1,800 prospective buyers had registered for the 131 units at Wings at Sea II that went on sale on Sunday at 9am.

One young man, who has just attained permanent residency having come to Hong Kong from Beijing seven years ago, bought a one-bedroom flat for about HK$5 million.

“Hong Kong home prices are even crazier than Beijing,” said the buyer, who just gave his surname, Wang. “I need my parent’s help to pay part of the initial down payment.”

Louis Chan, Asia Pacific vice-chairman at Centaline Property Agency, said at least five groups of buyers had registered to buy two units at Wings at Sea II on sale for about HK$15 million.

“End users made up 70 per cent of the firm’s registered buyers, while investors account for 30 per cent,” he said.

The average discounted price for units at Wings at Sea II was HK$14,800 per square foot, up 1.5 per cent from the previous week. The apartments, ranging in size from 343 to 634 square feet, were offered at HK$4.67 million to HK$10.26 million.

Cheung Kong Asset said one buyer paid HK$112 million for four flats at the My Central development on Sunday, as sales continued.

The developer said it had so far sold 164 units, worth HK$3.6 billion, at an average price of HK$30,500 per square foot.

“Among the buyers, some parents bought for their children,” said executive director Justin Chiu Kwok-hung on Friday.

The average discounted price for My Central was HK$28,700 per sq ft, with prices ranging from HK$18 million to HK$35 million.

Positive sentiment appears to have spilled over to the secondary market.

Many Well Property Agent said a 449 sq ft unit at Lockwood Court, Kingswood Villas in Tin Shui Wai, changed hands for HK$4.75 million, or HK$10,579 per square foot, a record for two-bedroom flats in the housing estate.