Hong Kong developer cuts prices by another 10pc at Sai Kung project as property market slows
Sino Land has become the latest developer in Hong Kong to cut prices and sweeten its mortgage terms to boost sales in the upcoming Labour Day week as the city’s once-sizzling property market shows signs of losing steam.
The developer on Wednesday announced it is raising the discount for the 30 units on offer at The Mediterranean project in Sai Kung to up to 26 per cent, from December’s 14.5 per cent. Buyers will also receive a first mortgage loan of up to 85 per cent, up from the earlier 80 per cent, of flat value.
The extra incentives translate into a price cut of 10 per cent.
“Developers have to offer deeper discounts and bigger mortgage loans as all of them want to speed up sales,” said Victor Lai Kin-fai, chief executive of consultancy Centaline Professionals.
He said developers are also releasing only small batches of flats to test the market as sales at most new projects have been slow.
Factoring in the maximum discount of 26 per cent, the price of a flat at The Mediterranean will drop to HK$9,989 to HK$12,331 per square foot, or HK$5.89 million to HK$11.39 million. For example, a 666 sq ft unit on the first floor of Block Five is on offer for HK$6.65 million, or HK$9,989 per sq ft.
Meanwhile, Wheelock Properties said the first 20 buyers of One Homantin in Ho Man Tin would receive an additional 1 per cent discount during the Labour Day Week holiday.
Sammy Po, chief executive of Midland Realty residential department, said the latest round of promotions are aimed at boosting sales during the forthcoming long weekend.
“These are largely targeted at local buyers rather than mainlanders, who are mostly interested in luxury residential projects,” he said.
Po said Sino Land increased the first mortgage loan to 85 per cent to drum up investment interest.
“I believe investors will account for 30 to 40 per cent of total sales.”
Victor Tin, associate director of the sales department at Sino Land, said the revised terms for The Mediterranean was mainly aimed at meeting the market demand. He said 40 of the 297 units at The Mediterranean, due to be completed in January 2018, have been sold.
Sino Land’s price cut came a day after Nan Fung Development offered 20 units at The Visionary in Tung Chung for 12 per cent less to clear the stockpile.
Separately, Swire Properties said it had sold 39 units at its luxury residential development Alassio in Mid-Levels in two hours on Wednesday, raising the total to 119 units in two weeks.