Swire sells out first batch of 40 units at luxury Mid-Levels project after offering 20pc discount

Discounts help move luxury units but some developers hold firm on price, citing the shortage of high-end housing in Hong Kong

PUBLISHED : Wednesday, 13 April, 2016, 8:26pm
UPDATED : Thursday, 13 July, 2017, 8:25am

Swire Properties’ deeper discount strategy proved effective in attracting buyers for its luxury residential project Alassio in West Mid-Levels with the first batch of 40 units sold in only two hours.

The project registered 240 prospective buyers for the first batch of 40 units, which collectively were worth HK$763 million.

“Most of the buyers bought two flats. Half of them are long term investors,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential department.

“As the project is located in a traditional luxury residential area, it has generated keen interest among investors looking for long term investment,” he said.

Po attributed the positive outcome to the fact that prices were about 20 per cent lower than Swire’s Arezzo luxury project on Seymour Road, with buyers becoming more selective in their home purchasing decisions.

Factoring in the discounts, the average price of the first batch of 40 Alassio flats, which range in size from 581 to 922 sq ft, would come to HK$25,816 per square foot.

The average price of a unit at Alassio, located at 100 Caine Road, is almost one fifth lower than The Morgan at 31 Conduit Road, which was launched by Phoenix Property Investors at a discounted average price of HK$32,000 per square foot last month.

Alassio units are going for up to a quarter less than Arezzo which launched at HK$26,300 to HK$34,700 per square foot in October 2014.

Separately, Chinachem Group said it sold two adjacent flats with a total area of 3,039 square feet for HK$121 million, or HK$40,000 per square foot, at its luxury development Eden Gate in Kowloon Tong earlier this week.

It will offer three houses and four duplexes at Eden Gate for tender next Monday until the end of May.

Chinachem said it would be asking for a price of at least HK$60,000 per square foot for the houses and HK$50,000 per square foot for the duplexes.

“We will not lower the prices even though property prices are dropping. We will not adjust to market conditions. These are premium lots and high quality units and we do not want to sell them for less than what they are worth,” said Ng Shung-mo, director of sales at Chinachem Group.

Five other units, out of the building’s total of 47, have been sold since May, he added.

“Recently, there is too much supply for small-sized flats, [so falling prices] is just a natural condition because there are more choices. But for luxury houses, or bigger flats, there is less supply and still a demand there,” Ng said.

Wheelock Properties said it will release a 636 sq ft unit with a 417 sq ft garden at One Homantin in Ho Man Tin for tender starting at noon on April 17, closing at 3pm the same day. The developer said it had generated HK$650 million in revenue from the sale of 50 units at One Homantin since it was launched on March 24.