Hong Kong developer Henderson sells 76 out of 100 units at Cheung Sha Wan project without offering discounts
- Majority of units sell for between HK$5 million and HK$6 million
- Registrations of intent exceed the number of apartments on offer by 5.5 times
Hong Kong developer Henderson Land sold 76 out of the 100 units on offer at The Addition, a new residential project in Cheung Sha Wan, on Tuesday, without offering a discount on the selling price.
The apartments, ranging from 220-277 sq ft in size, sold at an average selling price of HK$21,055 (US$2,683) per square foot. Most units were going for between HK$5 million and HK$6 million. Most apartments sold on Tuesday, the first day of sales, were one and two-bedroom units.
Interest in the property was strong, with registrations of intent received by Henderson Land exceeding the number of apartments on offer by 5.5 times. The bulk of unsold units mainly comprise studios, said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division.
“Given that the first batch of units sold was priced without a discount – unlike in January when some of the new projects were sold at as much as a 20 per cent price cut – I would say sentiment in the property market is improving,” he said.
China Overseas Land and Investment was in January offering its new residential project The Regent in Tai Po at HK$12,800 per square foot, about 32 per cent lower than a nearby project launched five months ago.
CK Asset Holdings too has a residential project in Cheung Sha Wan, called Seaside Sonata, and even if it were to go on sale this month, according to speculation, there would be no overlap in demand given the smaller apartments in The Addition, according to Po. Units in Seaside Sonata start at more than 400 sq ft in area and have two to three bedrooms.
Po said 60 per cent of the buyers on Tuesday were homeowners, the rest investors. Henderson Land will sell the remaining units in the current batch in the next few days. The project has a total of 200 units.
Centaline Property Agency, one of Hong Kong’s largest, said it expects residential property sales to touch 7,000 this month, of which about a third will involve new apartments.
According to Hong Kong’s Land Registry, a total of 5,231 sale and purchase agreements for residential building units were signed in March, for new as well as second-hand apartments.