Cheung Kong

Cheung Kong offers big discounts for City Point flats

First 350 flats at City Point to get cuts of up to 15.75 per cent after tweaking of stamp duty rule

PUBLISHED : Friday, 23 May, 2014, 12:52am
UPDATED : Friday, 23 May, 2014, 1:30am

Cheung Kong will release flats with discounts of up to 15.75 per cent at City Point in Tsuen Wan, the first housing estate to go on sale after the government proposed easing the terms of the double stamp duty.

The first batch of 350 units on offer are priced at HK$9,062 to HK$14,328 per square foot, compared with recent transaction prices of HK$9,600 to HK$13,000 per square foot in nearby areas.

"The launch prices are low as it is 20 to 30 per cent less than nearby projects after the discounts," said Iris Leung, a sales director at Centaline Property Agency.

Current average transaction prices at the seven-year-old Vision City are HK$12,866 per square foot, while the going rates are HK$9,660 per square foot at the adjacent Chelsea Court and HK$10,410 per square foot at Indi Home.

Justin Chiu Kwok-hung, an executive director of Cheung Kong, said the prices at City Point were designed to help buyers wanting to trade for bigger units.

"We are offering the first batch of units at lower prices in view of the government's proposed easing of stamp duty rules to help upgraders. We also want our buyers to be happy with the price," Chiu said.

Of the first batch of flats offered, 180 have three bedrooms, 114 have two bedrooms and 56 are four-bedroom units. They are priced between HK$5.3 million and HK$13.09 million. There are 1,717 flats at City Point.

Buyers will get a 4 per cent discount and an extra 5 per cent if payment is in cash. There will be a further 3 per cent discount if the preliminary purchase agreement is signed by June 30. Buyers will also be given a 3.75 per cent discount to help them offset the double stamp duty.

The total discounts amount to 15.75 per cent.

Factoring in the discounts, a 483 sq ft unit on the seventh floor of Block 7 will cost HK$4.5 million, the lowest in terms of lump-sum payments.

"Such lump-sum amount probably makes it the cheapest new flats in Tsuen Wan," a property agent said.

Patrick Wong, a director of property research at BNP Paribas Securities (Asia), said the proposed amendments would favour pre-sale of primary launches, "especially of large-sized units priced more than HK$6 million targeting upgraders and subject to higher stamp duty rates, as the waiver period could possibly extend to a year or more".

Buyers can get a refund of the extra stamp duty if they sell their existing flats within six months of signing a temporary contract for the purchase. Under the proposed change announced by the government earlier this month, the six-month period would start only when an official contract is signed.