Hong Kong property

Buyers snap up all 188 units at new Tuen Mun development, raising HK$1.1 billion for Hong Kong’s Sun Hung Kai Properties

City’s first new project launch since March drew 5,200 prospective buyer registrations, making it more than 26 times oversubscribed

PUBLISHED : Saturday, 12 May, 2018, 8:15pm
UPDATED : Saturday, 12 May, 2018, 11:34pm

Buyers snapped up all available units on sale at a new Tuen Mun property development on Saturday, as demand for new homes remain high.

Over 1,000 buyers lined up to purchase 188 flats at Sun Hung Kai Properties’ Mount Regency Tuen Mun development on Saturday, the city’s first new project launch since March this year. The sale drew registrations from 5,200 prospective buyers, making it more than 26 times oversubscribed.

By 5pm, eager buyers had snapped up all of the units available for sale. HK$1.1 billion (US$140 million) was raised for developer Sun Hung Kai Properties.

“The units offered at Mount Regency are popular because it’s a new development, and as the units are small, they are priced more affordably,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division. “Furthermore, the developer has offered a variety of payment terms, including higher mortgage amounts.”

He added that Tuen Mun’s location was also favoured by buyers based on its convenient access to the Hong Kong-Zhuhai-Macau bridge, which is expected to be open to the public sometime this year. The development is also nearer to the developing Qianhai special economic zone over the border in Shenzhen.

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Some 70 per cent of Midland’s buyers had purchased the homes for themselves, Po noted, while the rest had bought them as an investment. Due to the development’s smaller unit sizes and lower prices compared with a typical new project launch, most of the buyers were also younger people, he added.

The latest batch of Mount Regency units ranged from 304 to 468 sq ft in size, and were offered at an average discounted price of HK$15,348 (US$1,955) per sq ft. Most of the available units were either one- or two-bedroom flats. On Saturday, the cheapest unit came with a price tag of HK$4.98 million, with the most expensive going for HK$8.29 million.

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“There have been many new developments in Tuen Mun in recent years,” Po said.

But the first-hand property sale in Tuen Mun also reflected a slowdown in resale transactions in the area, with Midland recording about 40 second-hand transactions this month compared with 70 during the same period in April.