Hong Kong property buyers still piling in as more than 11,000 hopefuls sign up for three projects
Developers will be releasing more than 870 individual units, with an estimated value of more than HK$11 billion, for sale this week
Buyers are still piling into the Hong Kong residential property market after more than 11,000 potential buyers signed up to buy flats in three new projects being released this week despite the likelihood that the US Federal Reserve will increase interest rates this week.
Riding high on the surge in demand for properties in the city, developers will be releasing more than 870 individual units, with an estimated value of more than HK$11 billion (US$1.4 billion), for sale this week.
With a third batch of 46 units released on Monday, Cheung Kong Property will offer a total of 188 units at its Seanorama development in Ma On Shan for sale on Friday.
On the same day, Sun Hung Kai Properties says it plans to release at least 105 more flats at its Cullinan West development on top of West Rail’s Nam Cheong Station on Saturday, raising the total units on sale there to 315.
“The strong initial responses for these projects show there is still an excess of liquidity but limited investment alternatives,” said Thomas Lam, senior director at Knight Frank.
With some purchasers planning to buy more than one flat, he said property investors rather than those planning to actually live in them now accounted for about 30 per cent of new flat sales.
One buyer recently bought six units, totalling 12,912 square feet, at the Altamira luxury residential project at the Mid-Levels for HK$758.8 million, or HK$58,767 per square foot, through tender sale, according to private developer Majestic Elite Property Development.
Although some individual projects still see their prices being marked up significantly, Lam said most new developments would be well received as long as they were offered at reasonable prices. He added the sales outcomes of most projects remained good.
William Kwok, a director at Cheung Kong Real Estate, a wholly owned subsidiary of CK Property, said prices for the latest batch of 46 units at Seanorama would be 2 per cent higher than those of the first batch.
“A total of 188 units will be put on sale on Friday,” he said.
The average prices for the latest batch of units are HK$18,951 per square foot. Factoring in discounts of as much as 24 per cent, prices for some units could be cut to HK$14,368 per square foot, CK Property said.
Andy Chan, Sun Hung Kai Real Estate Agency’s general manager for sales and marketing, said its Cullinan West development would be released for presale as early as Saturday.
“The extra units will be four-bedroom flats, which are highly sought after by end-users currently,” Chan said. He said the next batch would have room for price increases.
Wheelock Properties, meanwhile, is releasing a further 93 units at its Monterey residential project in Tseung Kwan O this week, increasing the number of units on sale there to 372.
The average prices for the latest batch will be HK$14,568 per square foot after a discount of 17.5 per cent.
Wheelock is also offering two units, 3A and 3B, at its Mount Nicholson phase two development on The Peak for tender sale, which will close on March 17.