Small flat frenzy spills into Hong Kong’s luxury homes sector
Developers are pushing larger, high-end homes as the market gains confidence from strong mass-residential sales
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.
The boom in the mass housing sector will benefit the high-end market
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.
And four luxury projects are lining up to go on sale amid an increase in big ticket transactions in the secondary residential market.
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.
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.
