Hong Kong property

Swire slashes new flat prices by a fifth in Hong Kong’s prime Mid-Levels area

PUBLISHED : Thursday, 07 April, 2016, 8:17pm
UPDATED : Thursday, 07 April, 2016, 9:57pm

A price war among desperate developers is moving to the city’s prime areas, with Swire Properties pitching its new project in West Mid-Levels at about 20 per cent lower than a rival development nearby.

While Sun Hung Kai Properties, Wheelock Properties and Kerry Properties are slashing prices in Ho Man Tin, Swire’s deep discount brings the price war to the heart of Hong Kong Island.

Swire Properties released the price list for the first batch of 50 flats at its Alassio project. The prices vary between HK$24,577 to HK$30,396 per square foot, or HK$14.8 million to HK$27.39 million. Buyers will get a 4.25 per cent discount if they purchase one unit and 5 per cent for two. The developer will also provide up to 7.5 per cent cash rebate to offset the stamp duty.

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Factoring in the discounts, the average price of the flats, ranging from 581 to 922 sq ft, would come to HK$25,816 per sq ft.

“The low price reflects the highly competitive primary market,” said Raymond Li, a senior sales director at Centaline Property Agency’s Mid-Levels branch.

He said the average price at Alassio, situated at 100 Caine Road, was nearly a fifth lower than The Morgan at 31 Conduit Road, when it was launched at a discounted average price of HK$32,000 per sq ft last month.

The Alassio units are going for up to a quarter lower than Arezzo on Seymour Road, also developed by Swire and launched at HK$26,300 to HK$34,700 per sq ft in October 2014.

The 50-storey Alassio, which comprises 197 units, is expected to be completed in May next year. A 582 sq ft unit on the 17th floor is the cheapest unit on offer, priced at HK$14 million, or HK$24,000 per sq ft.

Price cuts by developers come amid a steady decline in property prices in the city. The owner of a 1,798 sq ft house at The Green in Sheung Shui has just dumped the property for a loss of HK$9.5 million. He is selling it for HK$18 million, or HK$10,011 per sq ft, after paying HK$27.8 million for the flat in 2014.

Adrian To, residential director of Swire Properties, said the first batch of 50 units could bring in HK$1 billion for the company, adding the prices at Alassio are “attractive”.

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On Wednesday, Sun Hung Kai Properties sold 12 units at Ultima phase two in Ho Man Tin in the face of an increasing number of defaults and price cuts at rival projects in the area.

Separately, Lands Department said it has issued eight pre-sale permissions for residential developments in the first quarter involving a total of 5,097 uncompleted units.