Cheung Kong

City Point pricing won't undercut secondary market, property agents say

Demand for Tsuen Wan project should hold up pricing for Cheung Kong and partner, agents say

PUBLISHED : Tuesday, 06 May, 2014, 3:08pm
UPDATED : Friday, 08 May, 2015, 10:47am

Guessing how Cheung Kong will price City Point, the housing estate in Tsuen Wan it plans to launch with Nan Fung soon, has been a popular game recently for property agents such as Eva Tse.

"The project has more than 1,700 units. The developer will probably offer a big price range for various potential buyers. But I believe they will not undercut secondary home prices," said Tse, assistant sales director of Centaline Property Agency's Tsuen Wan and Belvedere branch.

"This is the first large-scale residential launch in Tsuen Wan since the launch of Vision City [by Sino Land] in 2006. There are quite a large number of families in the district who want to upgrade their living areas. They are eyeing the project," she said.

"The developer can find buying support if the price is at par with the secondary market."

Tse guessed the selling price would compare with nearby Chelsea Court in Yeung Uk Road, where transaction prices ranged from HK$8,500 to HK$11,000 per square foot.

But the price range could be wider, depending on the flats' views. Agents said some two-bedroom units of the development facing a cemetery will be priced at HK$8,000 to HK$8,500 per square foot, comparable to adjacent Riviera Gardens, which was built more than 30 years ago.

Many of the four-bedroom flats have a sea view and may cost more than HK$10,000 per square foot, Tse estimated.

City Point, at the Tsuen Wan West MTR station, will have 1,717 two- to four-bedroom units. Cheung Kong said it would launch the first batch shortly but gave no details.

The developer plans to sell 800 flats at the project this year. Under the Residential Properties (First-hand Sales) Ordinance, the first batch of units released by the developer is required to be at least 20 per cent of the total.

Bocom International analyst Alfred Lau said that given its strong financial position, Cheung Kong is unlikely to undercut the prices in the secondary market to speed up sales.

Developers launched their properties below secondary market prices to test price support levels in October, when the market was extremely quiet, Lau said. When sales picked up, the developers offered cash subsidies for stamp duties instead of undercutting the secondary market.

He said that sales strategy would likely continue.

Tse said not just potential buyers but property agents, too, were keeping an eye on City Point.

"In the past few days, the development has been surrounded by many agents from big and small firms from Kowloon and other districts. They hope to grab potential buyers," she said.

"Competition is keen. The one who first makes the follow-up call will get the buyer."