Small flat frenzy spills into Hong Kong’s luxury homes sector

Developers in Hong Kong are changing their apartment sales strategy by offering larger, more luxurious units as impressive sales in the mass-residential sector strengthen confidence at both ends of the market, according to industry experts.

They say the recent strong uptake of small flats in new project launches - in which investors accounted for 30 per cent of total sales - has begun to spill over into the luxury housing sector.

“The boom in the mass housing sector will benefit the high-end market,” said Ricacorp Properties director Willy Liu.

Liu said the market has digested more than 3,100 new flats, mostly in mass-residential developments, so far this month.

The number of deals costing more than HK$10 million jumped 38 per cent to 199 in the first 11 days of this month compared to the same period in July, said Midland Realty.

“Such transactions accounted for 9.3 per cent of total sales in the secondary market which is the highest figure in 10 months,” said Buggle Lau Ka-fai, the agency’s chief analyst.

Last week, Emperor International Holdings sold a duplex unit for HK$177 million at Upton, on Connaught Road between Sheung Wan and Sai Ying Pun through tender sale. The selling price equates to HK$64,400 per square foot for the unit on the 45th and 46th floor with a saleable area of 2,747 sq ft, a new record in the district.

Nan Fung Development also sold a 1,058 sq ft unit at 80 Robinson Road in Mid-Levels West for HK$34.25 million, or HK$32,400 per sq ft, at the weekend.

And four luxury projects are lining up to go on sale amid an increase in big ticket transactions in the secondary residential market.

Taking advantage of positive market sentiment, Hanison Construction Holdings pitched the 2,134 sq ft penthouse unit at its luxury project, The Grampian in Kowloon Tong for HK$120 million, or HK$56,232 per square foot. The penthouse, which comes with a 1,672 sq ft rooftop, is one of 14 units put on sale at an average price of HK$35,558 per square foot without offering any discounts.

Meanwhile, Nan Fung Development is launching an aggressive marketing push for its luxury residential project, Island Garden, in Shau Kei Wan.

“Prices for Island Garden would be guided by luxury projects at Mid-Levels West as no supply for such quality exists in Shau Kei Wan,” said Victor Mark, director and general manager at Nan Fung last week.

Island Garden, due to be completed in January 2019, comprises 470 flats in four towers of between 24 and 26 storeys.

Unit size ranges from 485 sq ft to 2,290 sq ft. Seventy per cent of the flats at Island Garden have three to four bedrooms , while the remaining 30 per cent are one- to two-bedroom flats.

Paliburg Holdings and Regal Hotels International is offering five houses at Cosa Regalia in Yuen Long for tender. The five homes, whose sizes range from 2,150 sq ft to 2,824 sq ft, have asking prices of HK$26.04 million to HK$51.38 million, or HK$12,114 per sq ft to HK$19,018 per sq ft. The tender will close on September 30.

Wing Tai Asia put a price tag of HK$11 million, or HK$29,859 per sq ft on its 369 sq ft unit at Homantin Hillside in Hung Hom last Saturday.

The cost was unveiled after the developer released the price list for 48 units, with sizes of 369 sq ft to 1,259 sq ft. The most expensive one is a 1,259 sq ft unit costing HK$43 million, or HK$34,677 per sq ft.

K & K Properties last Thursday released the price list for its low-density residential project, 18 Rosewood, in Tuen Mun at a discount of 19.12 per cent. The project only has 18 units from 701 sq ft to 801 sq ft in nine, two-story blocks. After a maximum 19.12 per cent discount, prices for the units will be HK$9,975 to HK$15,526 per sq ft.