Hong Kong property

Buyers waste no time snapping up flats in newest Hong Kong development, the Cullinan West II

More than 3,600 prospective buyers had registered for 321 units, undeterred by soaring property prices in Hong Kong

PUBLISHED : Saturday, 25 November, 2017, 9:41pm
UPDATED : Saturday, 25 November, 2017, 9:40pm

Record price rises in the world’s most expensive property market have not dampened demand, as hundreds of investors queued up on Saturday hoping to get their slice of an exclusive new development, which had been 10 times oversubscribed.

The biggest sale of the day saw one buyer take six units at Cullinan West II on top of Nam Cheong Station, including three four-bedroom units, two one-bedroom units and a single two-bedroom unit for a lump sum close to HK$153 million (US$20 million)

More than 3,600 prospective buyers had registered for the 321 units, developed by Sun Hung Kai Properties, with investors moving fast to take full advantage as prices continue soaring to stratospheric new heights.

Saturday’s sales were seen as a test for the market, given they were part of the first major development put on sale since a waterfront site in Cheung Sha Wan sold for a record HK$17.28 billion (US$2.2 billion) a week earlier – making it the city’s most expensive residential plot ever.

Property agents said the recent sale likely boosted prices in the area, as developers and individuals moved fast to take full advantage of recent price rises.

“These strong results highlight there is still a lot of demand in the market,” said Sammy Po, chief executive at Midland Realty’s residential department.

“We expect property prices go up in the following months. But buyers will still focus on the first hand market.”

There were lively scenes in Kowloon as long lines of prospective buyers hoped to snap up a deal.

One prospective buyer from mainland China said he was hoping to buy a flat for himself before prices rise even further.

“The government can print more money when there’s not enough, but housing will only be less and less in the future,” he said.

Another buyer, who gave his surname as Wong, said he spent HK$24 million (US$3 million) on three one-bedroom units for his own use, as well as investment.

“I’ve invested in property since making some profits from the stock market,” he said. “I’m uncertain if it is good time to enter the market as property prices are really high, but I believe they are unlikely to fall significantly.”

Louis Chan, Asia-Pacific vice-chairman at Centaline Property Agency, said most of its clients registered for the Cullinan West II were end users.

“Eighty per cent of clients showed up today,” Chan said.

As of 9pm Saturday, more than 300 of the of the 321 units had been sold, according to market sources, including several deals that involved investors buying three units. Those same sources said they expected all units would be sold on Sunday.