Hong Kong property

Used home sales tumble after Chinachem stuns market with Parc City discounts

Sales of previously-owned homes in the city tumbled 15 to 40 pc on week after some units at Parc City were released at lower-than-expected launch prices

PUBLISHED : Tuesday, 22 August, 2017, 2:58pm
UPDATED : Tuesday, 22 August, 2017, 7:41pm

Only one transaction was recorded in the four major housing estates in Tsuen Wan last week, after Chinachem Group’s lower-than-expected launch price for its new project, Parc City, lured potential buyers away from secondary market, according to an agent at Midland Realty.

Belvedere Garden in Tsuen Wan was the sole development to record a transaction last week, while no sales were tracked at Discovery Park, Luk Yeung Sun Chuen or Tsuen Wan Centre, according to Midland.

A total of 34 sales were recorded among the 35 housing estates monitored by Midland for the week ended August 20, down 15 per cent from the 40 transactions seen in the previous week.

“Sales in the second hand market in Tsuen Wan have been frozen with the number of transactions dropping to just one last week, down from three in the previous week,” said Buggle Lau, an agent at Midland Realty.

On August 16, Chinachem Group offered the first batch of 191 units at Parc City, which is next to West Rail’s Tsuen Wan West station, at an average price of HK$14,449 per square foot, after a discount of up to 20 per cent.

It was the lowest launch price for new flats this year, and 10 per cent below the secondary market.

More than 16,500 people signed up for the units as of Monday, sources said.

Chinachem’s launch price was also 14 per cent below the HK$16,877 per sq ft price that Cheung Kong Property set in May for units at Ocean Supreme, a development alongside Parc City.

Data from Midland showed home sales in Kowloon declined 40 per cent last week, easing to nine transactions from 15 in the previous week.

Hong Kong banks offer this year’s lowest mortgage rates for two projects in Tsuen Wan

No sales were recorded at Metro City in Tsueng Kwan O and only a single sale took place in Whampoa Garden, according to 10 housing estates tracked by Midland in these areas.

The number of transactions in Hong Kong Island remained unchanged at eight, with Tai Koo Shing accounting for 50 per cent of the deals, Midland said.