Violence in Hong Kong’s Yuen Long casts long shadow over property projects in New Territories
- New home sales expected to drop 20 per cent this month, Centaline Property Agency says
- Developers such as New World and Chinachem, however, say violence unlikely to affect sales
Mob violence in areas such as Yuen Long will affect demand for new projects in the northern New Territories of Hong Kong, with sales expected to drop 20 per cent this month, Centaline Property Agency said on Tuesday.
The number of new homes sold will decline to about 1,200, the agency said. “If social events, such as protests, are happening, their impact is unavoidable,” said Perry Fong, Centaline’s senior sales director. “There is a psychological impact in the short term.”
Ryan Ku, client manager at Many Wells Property Agent, said the protests and any violence would dampen buying interest, with fewer potential buyers visiting show flats.
The projects in Yuen Long that could be affected by Sunday night’s violence include New World Development’s 313-unit Atrium House, Far East Consortium’s 24-unit Manor Parc, as well as Chinachem Group’s 720-unit Sol City.
New World, however, said its projects were unlikely to be greatly affected, with sales continuing as usual, because its sales office was in Tsuen Wan. Far East, meanwhile, said its sales would not be affected by “isolated incidents”. It added that land supply in Hong Kong was tight, and this was a fundamental reason why home prices were high.
Donald Choi, the Chinachem chief executive, said he remained confident about the market despite the violence in Yuen Long. “So far, we do not see a big impact,” Choi said. “The market has ups and downs, but Hong Kong has good prospects.”