Hong Kong developers offer top-end flats to lure 'golden week' buyers

Some Hong Kong developers are releasing high-end homes for sale to test potential demand from mainland buyers over the "golden week" holiday which ends on October 7.

The releases come five months after new restrictions on sales under the Residential Properties (First-hand Sales) Ordinance took effect on April 29.

"Since the new sales rules and successive tightening policies have now been in force for several months, developers want to use the holiday to test buyer sentiment - both from locals and mainlanders," said BNP Paribas property analyst Patrick Wong Chi-leung.

Sales of Hong Kong homes to mainland buyers have dropped sharply since the government imposed an additional 15 per cent tax, known as a buyer's stamp duty, on property sales to non-local and corporate buyers.

"Home prices in major mainland cities such as Beijing, Shanghai, and Guangzhou have meanwhile surged by some 10-20 per cent since the beginning of the year, making Hong Kong properties competitive," Wong said.

The first 50 units at The Graces - a development at Providence Bay in Tai Po - will be put on the market at an average price of HK$15,493 per square foot in terms of saleable area. After taking a maximum 6 per cent discount, the average price was HK$14,563 per sqft.

The Graces, comprising 193 flats sized from 930 sqft to 3,001 sqft of saleable area, is expected to be launched this week.

Taking into account the good response to the latest batch of flats in the project put up for sale, the selling price is expected to be comparable to the market price in the area.

Last week, Swire announced the re-launch of its Argenta project in Mid-Levels. The new price list includes 23 flats of between 2,182 sqft and 3,557 sqft.

Prices average HK$32,989 per sqft of saleable area after taking into account a maximum 4.75 per cent discount allowed to buyers who complete the purchase within 90 days.