Discounts from developer SHKP point to push on cash flow
Lures at Fanling project highlight developers' needs to offer incentives on stock of 2,000 flats for Easter presales amid rush to boost land banks
Sun Hung Kai Properties launched its Mount One residential project in Fanling with significant price concessions and the offer of a one-year bridge loan equivalent to as much as 70 per cent of a flat's value as an added lure for buyers.
"Undoubtedly, developers need to provide an array of incentives and financing schemes to aid buyers looking for bigger units," said Wong Leung-sing, a senior associate research director at Centaline Property Agency.
With an estimated 2,000 units available for presale during the Easter break, developers opted for a fast asset turnover strategy in a bid to raise cash flow to replenish their land bank at a time when land prices are declining. The Easter holiday takes place from April 18 to 21.
SHKP says it offered the first batch of 50 units at 144-unit Mount One with a discount of more than 22 per cent for buyers meeting certain conditions. Units on offer were priced from HK$8,814 to HK$12,897 per square foot on saleable area, about 10 per cent below the recent transaction price of HK$10,000 to HK$11,000 per square foot at the one-year-old Green Code project in the area.
It would also offer discounts of 5 per cent to buyers who paid cash; 3 per cent to those who sign an agreement on or before May 31 and thus are not required to pay extra stamp duties, and 2 per cent to those who are not applying for a second mortgage. A 70 per cent subsidy on stamp duties will be offered for overseas buyers, and those buying on behalf of their companies.
"It is an absolutely attractive price," said Victor Lui Ting, deputy managing director at SHKP.