CK Hutchison offers cheapest flats of the year at 15 per cent discount

Developer to cut up to 15pc from price, offering units as low as HK$7,786 per sq ft

PUBLISHED : Friday, 22 May, 2015, 2:15am
UPDATED : Friday, 22 May, 2015, 9:50am

Discounts of up to 15 per cent being offered by CK Hutchison Holdings (CKH) on the first batch of flats at The Beaumount II in Tseung Kwan O could make them the cheapest new flats this year in per-square-foot terms.

CKH shares rose 1.3 per cent to HK$171.30 yesterday as investors banked on fast asset turnover to lock up sales amid an abundant new supply that could fuel fierce competition.

In the first quarter, construction work started on 6,500 flats, the most since 2005, according to the Buildings Department.

CKH is selling 182 units at The Beaumount II, about 15 minutes' walk from the MTR Corp's Lohas Park station, at a discounted price as low as HK$7,786 per sq ft.

"The discounted price will be the lowest per square foot for a new project launch this year," said Sammy Po, chief executive of Midland Realty's residential department.

The units on offer have list prices of HK$9,160 to HK$12,805 per sq ft of saleable area, or HK$6.83 million to HK$9.6 million. Buyers will get a 2 per cent discount and an extra 5 per cent reduction if payment is made in cash. A further 2 per cent discount is offered if the preliminary purchase agreement is signed by June 30. They will also be given a 6 per cent discount to offset the impact from the double stamp duty. The total discounts amount to 15 per cent.

Factoring in the discounts, a 746 sq ft flat on the third floor of Tower 1 will cost HK$5.8 million, or HK$7,786 per sq ft.

Units at The Beaumount I, which was delivered to buyers in March 2013, are fetching about HK$7,885 to HK$10,341 per sq ft, according to Centaline Property Agency.

The Beaumount sale comes a month after CKH pulled in HK$12 billion in revenue from the sale of all 1,648 units at the Hemera project nearby.

CKH executive director Justin Chiu said The Beaumount II flats were being offered at a "sweet price" for home buyers.

He said the developer would realise HK$1.5 billion if all homes in the first batch sold.

Alfred Lau, an analyst at Bocom International, said the flats were cheaper because the project was further from the MTR station.

The 872-unit project is due to be completed in September next year.