Hong Kong’s Nan Fung Development prices Island Garden units at market rate

PUBLISHED : Tuesday, 27 September, 2016, 9:54pm
UPDATED : Tuesday, 27 September, 2016, 11:16pm

Hong Kong developers are adopting firmer pricing strategies after new project launches have generated overwhelming buyer response, with Nan Fung Development offering units in Shau Kei Wan at a similar price as a nearby project released last month.

On Tuesday Nan Fung released prices for the first batch of 148 flats at Island Garden, with unit sizes ranging from 485 to 1,051 sq ft, priced at HK$11.05 million to HK$36.8 million, or HK$20,272 to HK$29,821 per square foot.

“Developers are no longer launching projects to undercut rivals because of overwhelming sales results in the past month. Home prices have rebounded 5 per cent in the past month,” said Sammy Po, chief executive of Midland Realty’s residential department.

Island Garden’s launch price was similar to properties at Lime Gala which is located in the nearby area, he said.

“Island Garden is not being launched at bargain prices, but its special finance scheme will aid upgraders to trade up for bigger size units,” said Po.

Nan Fung, through its financial arm, will provide a first mortgage of up to 85 per cent of the flat’s value for a 20-year term and allow buyers to defer the mortgage repayment to the 4th year after completion of the purchase. Interest rates from the 4th year will be fixed at 2.75 per cent, and raised to prime, now standing at 5 per cent, from the 5th year and onwards.

Factoring in discounts of as much as 20.8 per cent, the average price of a flat at Island Garden will drop to HK$19,409 per sq ft, from HK$24,507 per sq ft.

The cheapest flat is a 485 sq ft unit in Block 2 on offer for HK$11.05 million. The discounted price will reduce that to HK$8.75 million, or HK$18,044 per sq ft.

At the same time, Sun Hung Kai Properties released another 57 units at Lime Gala at 393 Shau Kei Wan Road at an average discounted price of HK$19,417 per sq. The units will be offered for sale on Saturday.

SHKP has raised prices for Lime Gala by nearly 10 per cent since it was first launched at an average of HK$17,732 per sq ft early last month.

Meanwhile, Henderson Land will also increase prices for its small flat development, One Prestige, in North Point by 2 per cent. It will release 10 units, with price ranges of HK$3.89 million to HK$4.42 million each, for sale on Saturday as well.