SHKP sale boosts market sentiment
Outlook remains unclear despite record price fetched for the New Territories as supply rises
Sun Hung Kai Properties yesterday landed a record price for the New Territories from a sale of townhouses at a Tsuen Wan West project, but property observers are guarded on the broader market outlook despite the improved sentiment.
The developer sold at least three townhouses at the Seafront for as much as HK$55,889 per square foot, the highest price recorded for the New Territories.
Despite the eye-catching figure, some observers said the outlook was clouded as developers rushed to launch projects to absorb the pent-up demand in the market.
"Developers are looking to launch their large-sized units with three to four bedrooms. The increase in new supply could exert pricing pressure on these units," said Midland Realty chief executive Sammy Po Siu-ming.
Units of this size were sold at between HK$7 million and HK$20 million, Po said, but those in non-urban areas could see greater pressure.
Small units - from 400 sq ft to 500 sq ft - and luxury homes of more than HK$20 million would see prices stabilise as the supply was smaller, he said.
At the Seafront, SHKP yesterday sold at least three townhouses at prices from HK$115 million to HK$161.8 million, equivalent to between HK$46,528 and HK$55,889 per square foot.