Hong Kong investors still lining up to buy even the smallest flats

Latest sales figures from around the city show buying appetite continues unabated

PUBLISHED : Friday, 09 September, 2016, 10:01pm
UPDATED : Thursday, 13 July, 2017, 8:25am

Many buyers with the budget to buy just one flat in the latest round of releases at the Lime Gala development in Shau Kei Wan could be left empty handed.

According to the sales arrangements set by developer Sun Hung Kai Properties (SHKP), priority will be given to buyers opting to buy least two flats in Friday’s sale of 38 units.

Bulk purchasers bought 37 of the flats, with unit sizes ranging from 329 square feet to 479 sq ft, within two hours, according to market sources, meaning just one unit was left for end users.

The development had signed up 528 potential buyers for the 38.

“The market for small flats is boiling ,” said Sammy Po, chief executive of Midland Realty’s residential department.

The market for small flats is boiling
Sammy Po, chief executive, Midland Realty’s residential department

He said 70 per cent of his clients are currently buying for investment and renting them out.

“Most of the smaller flats are being sold out first, as smaller lump sums are needed. Investors appear to prefer pouring several million dollars into property than into a volatile stock market,” he said.

One buyer forked out HK$27 million for three flats at Lime Gala on Friday.

SHKP’s sales arrangements divided buyers into two groups: Group-A required buying a minium of two flats, one of 429 square feet or bigger, and one studio flat. Group-B was allocated to one-flat purchasers. Prices at Lime Gala are from HK$6.03 million to HK$10.8 million.

Elsewhere in the market, New World Development reported it had sold all 20 units at its Skypark development in Mong Kok. The flats, all larger than 400 sq ft, had increased as much as 4 per cent in price from the previous batch released, and were selling at an average HK$22,800 per sq ft.

Henderson Land, meanwhile, announced it would be offering 30 units for sale at its One Prestige in North Point on September 20. The developer has priced the units at HK$3.9 million, or HK$23,975 per sq ft, for a 163 sq ft flat, the smallest ever sold on Hong Kong Island, but sales of large units at the site have recorded a tepid response.

And Wheelock Properties revealed it had sold one unit each at its Savannah site in Tseung Kwan O, and One Homantin, in Ho Man Tin.