Flat value plunges HK$1 million in five days as desperate Hong Kong developer cuts prices

Buyers of a luxury residential project in Ho Man Tin will see their flat value shrink by HK$1 million in five days as the developer, Wheelock Properties, has decided to offer an extra eight per cent discount to undercut two rival projects in the area.

Wheelock on Friday announced discounts for the latest batch of 60 units at One Homantin will be raised by 8 per cent to up to 26.5 per cent, from 18.5 per cent, when it was launched for sale on March 27.

The steeper discount effectively means buyers who bought One Homantin on Sunday would suffer a paper loss of at least HK$1 million even before they take possession in May, 2018. The developer has only managed to sell 33 units of the 148 it put on sale last Sunday.

“The bigger discounts may affect some potential buyers who could now hold back in anticipation of even more discounts. But some may also take the opportunity to buy. It’s too early to predict buyer response,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential department.

He said Wheelock increased the discount mainly due to direct competition from Mantin Heights, which is better located than One Homantin.

The extra discount is also seen as a move to lure buyers away from Sun Hung Kai Properties’ Ultima phase two development in Ho Man Tin. SHKP sold 37 out 43 units released for sale at that project  by 9pm on Friday.

With a 26.5 per cent discount, average price of One Homantin flats will come down to HK$18,793 per square foot, 2.8 per cent lower than the HK$19,335 per sq ft being offered at Mantin Heights and HK$27,000 per sq ft at SHKP’s Ultima phase two.

Wheelock will offer the new units for sale on Monday.

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