SHKP offers interest-free loans at new Yuen Long development

Sun Hung Kai Properties has released its latest residential project in Yuen Long not only at a lower-than-expected price but it is also providing potential buyers with interest-free loans as an inducement, underscoring the eagerness of developers to speed up sales amid abundant supply in the area.

The developer released the price list of the first batch of 226 units at Grand Yoho with prices as low as HK$9,931 per square foot after factoring in a maximum 18.25 per cent discount, the company said.

The price is about 10 per cent lower than units at nearby Yoho Town, which sell for HK$11,030 per square foot, said Louis Chan Wing-kit, Centaline Property Agency’s managing director for residential.

SHKP will provide a 36-month interest free loan for up to 88 per cent of the flat value to buyers.

A 543 square foot unit on the seventh floor of Block Nine is being offered for HK$5.29 million, or HK$9,931 per square foot after discount, the lowest in terms of price per square foot.

Sammy Po, the chief executive of Midland Realty’s residential market, said with newer flats becoming available, sales in the secondary market in Yuen Long will cool in coming weeks.

“It will certainly lure potential buyers away from the secondary market,” Po said.

SHKP said two-bedroom flats accounted for 75 per cent of the first batch, while the remainder are three-bedroom flats. The discounted price for the flats, with sizes ranging from 514 sq ft to 774 sq ft, are between HK$5.28 million to HK$11.09 million.

Grand Yoho phase one will comprise 1,128 units.

Victor Lui Ting, deputy managing director at SHKP, said the firm will pull in HK$1.9 billion if all the flats are sold.

Other residential projects saw strong initial responses from potential buyers at the weekend.

Wang On Properties on Sunday released the second batch of 130 units at Met Blossom in Ma On Shan, raising the number available for sale to 260. Prices for the latest batch were raised 2 per cent for an average cost of HK$13,605 per square foot after factoring in discounts of as much as 10 per cent.

The project has attracted attention as one of the 260 flats was available at HK$2.76 million after discounts, the smallest lump sum price for a private flat in Ma On Shan.

More than 2,900 people registered interest in the 260 units.

Also, SHKP signed up 888 potential buyers for the Lime Gala housing project in Shau Kei Wan. Factoring in a maximum 9 per cent discount, average prices are HK$18,384 per square foot. The cheapest and smallest unit covers 281 sq ft and is on sale at HK$5.49 million, or HK$17,800 per square foot. SHKP has not finalised the official sale date yet.