Kerry Properties

Kerry upbeat on launch of Bayview project in Ma Tau Kok this month

Executive of developer's real estate division is positive new project in Ma Tau Kok will attract buyers despite new rule on primary sales

PUBLISHED : Wednesday, 26 June, 2013, 12:00am
UPDATED : Wednesday, 26 June, 2013, 4:55am

Kerry Properties will launch its residential development Bayview in Ma Tau Kok by the end of this month, the fifth new project offered for sale since the new rule on primary flat sales took effect at the end of April.

The developer released the first price list of 50 flats sized between 508 square feet and 890 sq ft based on saleable area on Friday. The average price is HK$15, 589 per sq ft.

Sales would begin on June 29, said Chu Ip-pui, an executive director of Kerry Real Estate Agency. The 36-storey Bayview consisting of 175 flats at 9 Yuk Yat Street, Ma Tau Kok, is complete.

"What you see is what you buy," said Chu, who added that he was confident there would be a good sales response despite a falling stock market and recent comments by the US Federal Reserve about scaling-down its bond purchasing scheme.

Federal Reserve chairman Ben Bernanke said last week it could start winding-down its bond buying this year and end it by mid-2014, which will see a turnaround in liquidity and an increase in interest rates.

"The project offers just 175 homes and new supply is limited," said Chu, who expected strong interest from upgraders in Kowloon East. "It is a brand new project and captures a nice sea view," he said. About 10,000 visitors viewed the project's show flats over the weekend.

Kerry is offering buyers a second mortgage repayable at an interest rate of 5 per cent. Buyers can settle the payment with a second mortgage for a maximum 25 per cent of the purchase price, subject to a minimum down-payment of 15 per cent of the purchase price.

Chu said the pricing of the Bayview flats was set after taking similar quality projects such as Grand Waterfront also in the same area as a reference.

He did not agree with analysts' views that the prices were higher than those in the secondary market. The lowest price on a Bayview flat of 508 sq ft of saleable area is HK$6.54 million, or HK$12,882 per sq ft. The highest price on an 890 sq ft one with a sea view, is HK$15.6 million or HK$17,529 per sq ft of saleable area. The average selling price is around 18 per cent above the average of comparable homes in the secondary market, BNP Paribas said.

"Sales responses to the smaller sized units is likely to be better than the larger-sized units because of smaller lump sums," said Patrick Wong Chi-leung, associate director of property research at BNP Paribas.

Kerry Properties is part of Kerry Group, the controlling shareholder of the SCMP Group, which publishes the South China Morning Post.