Prices up on rush of home buyers through doors

Business | Esther Yu Mar 20, 2017
A rush of home sales during the weekend - close to 1,000 flats sold - drove developers to hike prices further.

Monterey, a project at Tseung Kwan O from Wheelock (0020), saw all of 480 flats offered with a value of HK$4.18 billion sold in two days from Friday.

That spurred Wheelock to list another 168 flats with an average price of HK$15,631 per square foot, or a 10 percent increase compared to the first batch of Monterey units that carried a price tag of HK$14,208 psf. They will be selling from Wednesday.

Ricky Wong Kwong-yiu, managing director at Wheelock Properties, said additional price hikes will kick in if sales run hot this week.

Even brisker business came at Cullinan West in Nam Cheong with 309 flats sold on Saturday. The market value of the homes from Sun Hung Kai Properties (0016) was HK$4 billion.

Responding, SHKP put out a second batch of 105 flats at an average square- foot price of HK$21,865.

Victor Lui-Ting, deputy managing director of SHKP, said a 3-4 percent price hike was moderate considering the keen subscription numbers for homes and the views that can be enjoyed from flats in the second batch.

Also, SHKP said, 95 percent of Cullinan West buyers were local people. Now it is weighing the idea of allowing people who intend to buy additional flats to have first pick from the second batch.

Brian Li Tze Leung, the president of Broadway Photo Supply, is well along in acquisitions there. He and his family are said to have bought 11 flats for HK$230 million.

Also enjoying the pace is Cheung Kong Property (1113), with 128 flats at its Ma On Shan project Seanorama sold from 188 offered on Friday. Now there are another 56 flats offered, with some costing 2 percent more. Executive director Justin Chiu Kwok-hing said it was already "outdated" to talk of an interest rate hike since Hong Kong did not follow the lead of the US Federal Reserve. The fact major banks have further reduced mortgage rates supported business, he added.

Alto Residences, a project at Tseung Kwan O by Empire Group and Lai Sun, has chalked up 19 units sold since March 3, and 10 of them went over the weekend at prices ranging from HK$6.09 million to HK$17.1 million.

At Kai Tak, a new project from Poly Property (Hong Kong), Vibe Centro, recorded 300 subscriptions for the 188 flats put out.

In the secondary market, Centaline said it recorded 17 deals at the weekend for the 10 estates it tracks. Kingswood Villa, the Tin Shui Wai estate favored by first-time buyers, saw 10 of the deals.

A two-bedroom flat at City One in Sha Tin was sold at HK$4.5 million while a 584 sq ft home in Taikoo Shing went for HK$11.48 million, or HK$19,658 psf - nudging the most expensive two-bedroom flat at HK$11.5 million last month.

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June 2017