All 122 Kai Tak flats snapped up in latest release at ‘affordable’ Hong Kong housing project

All 122 flats released for sale at the One Kai Tak Phase Two project on Saturday were snapped up, signalling strong demand for primary property ahead of the Lunar New Year.

The project, on the site of the former Kai Tak airport, is being developed by mainland Chinese developer China Overseas Land and Investment. Flats are available only to buyers who hold Hong Kong permanent resident cards, part of a government programme to make housing more affordable.

The sale was oversubscribed by more than 10 times, with 1,300 people registering to buy one of the 122 homes on offer.

HK$5 million Kai Tak flat deals a blow to Hong Kong government’s affordable housing plan

The largest and most expensive flat, which measures 799 sq ft, costs HK$18.85 million after discounts. Even the smallest, at 375 sq ft, is priced at about HK$6.42 million after discounts.

“Kai Tak is an urban area and its potential is highly endorsed by the market,” Sammy Po, chief executive of Midland Realty’s residential department, said. “The recent sales of the primary property market is good and this also gives confidence to buyers.”

Home prices in the city rose to a record high in November, despite cooling measures introduced by the government. Stamp duty was more than doubled to 15 per cent for second-home buyers in a bid to curb investment demand.

Po said most Midland customers were purchasing flats for their own use, with only 20 per cent buying for rental or investment purposes.

Louis Chan Wing-kit, managing director of Centaline’s residential department, indicated that 80 per cent of its buyers had attended the sale on Saturday, 8 per cent higher than at last week’s sale of 188 flats.

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Chan said there was strong market sentiment in the primary market, especially as many developers were releasing flats for sale right before the Lunar New Year. Centaline estimated it would record about 1,500 primary property transactions for January.

On Friday, New World Development and Vanke Property (Overseas) sold 400 flats at the Pavilia Bay in Tsuen Wan. One sold for more than HK$20,000 per square foot, setting a record in the area.

Last Saturday 188 flats of One Kai Tak Phase Two were released for sale. The first 125 averaged HK$17,879 per square foot after discounts. The other 63 averaged HK$17,588 per square foot after discounts.

China Overseas Land and Investment won the One Kai Tak project in June 2013 for a total of HK$4.54 billion, under a government initiative known as “Hong Kong property for Hong Kong people”, which aims to prevent overseas buyers from driving up prices.