Buyers snap up nano apartments during weekend sale, leaving bigger units to struggle

New home sales experienced mixed fortunes over the weekend, as more buyers took the micro-flat route, and showed extra caution for bigger-sized apartments, costing anything above HK$6 million (US$767,000).

China Overseas Land & Investment had sold 156 out of the 290 units at its “One Kai Tak”, Phase Two development, at the former airport site in Kowloon East by 6pm on Sunday.

Watch: Here are 8 Hong Kong nano flats that prove small can still be beautiful

But on Saturday, buyers snapped up 126 nano flats, or 93 per cent, of the 136 units on offer – the majority costing HK$3 million to HK$5 million – at the “Edition 178” development in Kwai Chung, an area within Tsuen Wan in the New Territories.

“Those sales indicate flat buyers are being asked to come up with smaller down payments,” said Sammy Po , chief executive of Midland Realty’s residential department.

At One Kai Tak Phase Two, he said sales of two to three-bedrooms, costing in excess of HK$6 million were slow.

But with first-time buyers of smaller flats worth less than HK$4 million able to apply for up to 90 per cent of a flat’s value through Hong Kong Mortgage Corporation’s mortgage insurance scheme, those were selling well.

Under current rules, the standard bank mortgage ceiling is 50 per cent on flats costing more than HK$10 million.

“That explains the strong sales of mirco-flat projects over the past fortnight,” he said.

Hong Kong’s latest nano flats prove popular despite HK$3m price tag

Tony Yau, a director and general manager of China Overseas Property, a subsidiary of China Overseas Holdings, the parent of China Overseas Land, said 70 per cent of buyers were end users, or those who plan to live in their purchases

“One bedroom flats were the most sought after, and all on offer over the weekend were fully reserved by 1.40 pm on Sunday,” he said.

At One Kai Tak Phase Two, units with areas ranging from 375 square feet to 799 sq ft were being offered at HK$18,900 to HK$22,800 per sq ft, or HK$6 million to HK$18.29 million after discounts of up to 12.5 per cent.

The average discounted prices were HK$21,346 per sq ft, 25 per cent higher than the previous launch’s HK$17,500 per sq ft in January. One Kai Tak is the only project on the marker being sold exclusively to Hong Kong permanent residents.

Louis Chan Wing-kit, Centaline Property Agency’s Asia-Pacific chief executive, said that Edition 178 is proving “very popular” among young buyers.s

“There hasn’t been any new developments being sold for that kind of price in the last two decades and so the apartments are very attractive and there is a big demand for this estate,” said Chan.