Hong Kong property

Tsuen Wan sales show Hong Kong housing market is ‘alive and kicking’

Experts say demand shown in Parc City project should mean a robust month for sales, after July saw slowest price growth in 16 months

PUBLISHED : Saturday, 02 September, 2017, 10:49pm
UPDATED : Saturday, 02 September, 2017, 11:18pm

Buyers on Saturday snapped up all 432 flats, worth HK$4 billion, in the second batch to go on sale at a private residential project in Tsuen Wan, signalling a robust property market this month, according to observers.

Strong demand for the Parc City development has seen all of its 953 flats, worth HK$9 billion, snapped up within nine days, making it the most sought after new project since 2013.

That would bode well for Hong Kong’s housing market in September, experts said, after it recorded the slowest growth in property prices in 16 months in July. That was taken as a sign that the breakneck pace of gains was finally losing momentum.

Louis Chan, Centaline Property Agency’s managing director for residential sales, said: “Recently the housing market situation seems quite good as there were 1,600 first-hand property transactions recorded in August.

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“Even if the US Federal Reserve decides to raise interest rates, banks in Hong Kong are not that likely to follow, and thus I expect the September housing market in Hong Kong to be very much alive and kicking.”

Buyers started to queue outside Parc City’s sales office at around 8am, ignoring the No 1 typhoon warning signal as Tropical Storm Mawar came within 800km of the city.

Around 70 per cent were retail buyers, while the rest were investors, showing strong demand for residential projects, according to Sammy Po, chief executive of Midland Realty’s residential department.

“We expect the first-hand property transactions to pick up in September to reach 2,000,” he said. “As you can see from the good sales situation at the Parc City project, I think the buying frenzy will continue this month.”

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Parc City was developed by Chinachem Group, one of the city’s property giants, which has built more than 300 tower blocks across Hong Kong.

It drew more than 22,500 would-be purchasers, who registered to buy the first batch of 521 flats late last month, the largest number of subscribers for a new project since 1997.

Around 1,000 prospective buyers for the second batch showed up on Saturday. Some 350 of Parc City’s 432 flats had been sold by 5pm, four hours ahead of the 9pm sales deadline.

The company was looking to pocket around HK$9 billion from the sale of all 953 flats.

With sizes ranging from 427 sq ft to 859 sq ft, the flats were priced at an average of HK$15,826 per sq ft after factoring a 20 per cent discount. Unit prices ranged from HK$6 million to HK$15 million each.