Sol City sales fall flat as Hong Kong project launches lose their lustre

The era of eager buyers falling over themselves to snap up a home in Hong Kong when a new project is launched may be over, as developers increasingly find themselves struggling to shift even half of the units on sale.

Chinachem City managed to sell 205, or 40 per cent, of the 504 units available at Sol City in Yuen Long by 5pm on Friday, according to market sources. That is a disappointing result for the developer, which had been hoping to sell 70 per cent to 80 per cent.

The flats at Sol City, above Long Ping Station – about 70 per cent of the total – measuring between 322 and 749 square feet were priced from HK$4.81 million to HK$11.92 million, a range of HK$13,389 to HK$17,583 per square foot after discounts.

The price was up to 12 per cent lower than lived-in homes in the area, but that was not enough to win over as many buyers as hoped for.

“Honestly speaking, the location and the price of this project is not bad. If it was put on the market two months ago, it could be sold out on the first day,” said Richard Lee, chief executive at the real estate agency Hong Kong Property. “But under the circumstances, particularly the further plunge of the stock market damaging prospective buyers’ appetite, 200 units [sold] in a day is pretty much the standard.”

The tepid sale is the latest in a string of signs the world’s priciest property market is on the turn, as a stock market rout, rising mortgage rates and the worsening US-China trade war take a toll on demand.