Few takers for flats priced above HK$10 million at Centra Horizon in Tai Po as buyers’ confidence takes a hit

Investors’ appetite for new flats priced above HK$10 million (US$1.27 million) is showing signs of waning as they are hesitating to dig deeper into their pockets for large units, fearing a prolonged US-China trade war could hurt economic outlook.

As of 5pm on Monday, developer Billion Development and Project Management only managed to sell 160 out of 307 units on offer at its Centra Horizon project in Pak Shek Kok, Tai Po, according to agents. Most of the units sold were priced below HK$6 million, with only a few takers for units costing more than HK$10 million, they added.

During the sale of the first batch at the end of April, investors snapped up more than 75 per cent of the 295 units on offer, waiting patiently in long, snaking queues outside the company’s sales office for a chance to buy a flat.

The cooling off in demand comes amid an escalation of tension between China and US.

The the world’s two largest economies are yet to reach an agreement to end the year-long trade war. Last week, the US increased tariffs on US$200 billion of Chinese imports to 25 per cent, sending Hong Kong’s benchmark Hang Seng Index down 5 per cent.

“The sudden rise in US-China tensions has put the brakes on the recent sharp and strong recovery as some buyers are afraid of further turmoil,” said Derek Chan, head of research at Ricacorp Properties.