Sun Hung Kai’s 270 sq ft Cullinan West flat lists at almost HK$8 million

Sun Hung Kai Properties (SHKP) has raised the launch price of a batch of apartment units by 11 per cent within four days, in what’s probably the most extreme display of price elasticity among Hong Kong’s property developers.

Up to 123 units of the second batch of Cullinan West apartments, atop West Rail’s Nam Cheong Station in Kowloon, were released for sale on Tuesday at an average price of HK$21,055 (US$2,711) per square foot after discounts, or 11 per cent more than the HK$18,998 per square foot average in the first batch of 210 units.

The smallest apartment, a 270 sq ft unit on the 51st floor, will cost HK$1 million more than a same-size unit on the 10th floor, which was released for sale last week.

“It’s the smallest unit along Hong Kong’s railway network,” said Louis Chan Wing-kit, the Asia-Pacific chief executive of Centaline Property Agency’s residential department. “The frenetic buying spree has lifted home prices.”

The second batch will be available for between HK$7.94 million and HK$48.38 million before discounts, with sizes ranging from 270 sq ft to 1,503 sq ft.

The developer will offer discounts of up to 23 per cent including a 1.5 per cent rebate once the transaction is completed. After discounts, the price of the smallest unit will be HK$6.07 million, or HK$22,200 per square foot.

A two-bedroom unit measuring 400 sq ft at Island Harbourview at Olympic Station, one stop from Nam Cheong, currently goes for HK$21,000 per square foot, Chan said.

A simpler explanation for the higher prices may be that the second batch of Cullinan West apartments offers owners better a view of Victoria Harbour, said SHKP’s deputy managing director Victor Lui.

Andy Chan, Sun Hung Kai Real Estate Agency’s general manager for sales and marketing, said the sale on Saturday will be split into two parts.

The developer will allocate 137 units for the Group A prospective buyers who intend to buy two to three units inclusive of one bigger than 1,500 sq ft.

The remaining 172 units will be reserved for Group B buyers who will buy two units at most without any size limitation.

“We will see long queues of prospective buyers at sales offices this weekend again,” said Centaline’s Chan.