SHKP flat sale points to market pick up

Sales of Sun Hung Kai Properties’ (SHKP) Ocean Wings development in Tseung Kwan O went off smoothly yesterday, a sign that sentiment in the local property market could be picking up following five straight months of home price declines.

SHKP put on the market 228 units at Ocean Wings, offering a special deal of a reduced downpayment of 5 per cent for non first-time buyers who had already paid off previous mortgages.

Sammy Po Siu-ming, chief executive of Midland Realty’s residential department, said more than 50 large flats of two bedrooms and above sold out in the morning, while more than 60 smaller flats had sold out by around 3pm.

“It seems SHKP will successfully clear this batch of its offering,” he said.

SHKP released the price for the first 126 units of Ocean Wings on March 23, at an average price of HK$14,380 per square foot. Factoring in a maximum 14 per cent discount, the average price would be HK$12,400 per sq ft, putting the cheapest one bedroom flat at HK$4.33 million. It released a second price list on March 27 for more flats, with the cheapest unit priced at HK$4.96 million.

“Demand is high in the location as many local users are seeking a housing swap. The pricing is reasonable, and many local buyers trust the brand,” Po said. He noted that 85 per cent of the buyers bought for self use, while only 15 per cent were investors.

Hong Kong home prices have been on a losing streak for five months in a row to February, bringing the cumulative decline since the September peak to 10.9 per cent, according to government data.

The Rating and Valuation Department’s monthly supplement released on Thursday showed the general price index for private homes was 272.8 in February , the lowest since October 2014, though Po said turnover on both the new and second-hand home markets had picked up in March.

Prices at 100 housing estates monitored by Midland Realty continued to fall in March with average transaction prices at HK$9,630 per square foot, down 2.2 per cent from February’s HK$9,855 per square foot.