In the seven days following Lee’s announcement, the market saw 182 new home sales, according to property agents. The primary market recorded a total of 362 transactions in October, a 32 per cent increase from the 274 cases in September, which was this year’s lowest total, but still far below March, when there were 2,100 transactions, according to Midland Realty.
With developers moving to sell leftover units at already launched projects, the market will see about 600 new home units put on sale in November. And property agents expect total primary-market transactions to reach 1,300 to 1,500 in November.
“Developers will be actively selling their projects as the uncertainties on whether the government will cut the cooling measures has reduced,” said Chau Kwong-wing, chair professor and director of the Ronald Coase Centre for Property Rights Research.
However, developers are not very optimistic about the overall market outlook, Chau said.
JLL anticipates that 6,400 private residential flats will be completed in the fourth quarter.
KT Marina in Kai Tak, jointly developed by K. Wah International, Wheelock Properties and China Overseas, sold 60 of the 218 units in phase I on Saturday. The project, in two phases, is one of the largest residential developments located at the former airport site, providing a total of 2,138 units.
It includes one-bedroom to three-bedroom flats with areas ranging from 306 sq ft to 586 sq ft. The discounted prices between HK$5.75 million and HK$15.46 million translate to HK$17,987 to HK$26,384 per square foot.
“The slow sales were in line with expectation,” said Tony Wan, director of sales and marketing for Hong Kong Properties at K Wah International. “More than half of the buyers are new Hongkongers, some of them have obtained permanent resident identity.”
Hong Kong sees sluggish weekend property sales in Kai Tak and Aberdeen
Hong Kong sees sluggish weekend property sales in Kai Tak and Aberdeen
The developer is adopting a strategy of clearing inventory, Wan said.
Emperor International Holdings’ residential project SouthSky in Aberdeen sold 32 of its first 85 units on Saturday. The project is a 23-storey residential building with 110 units, ranging from 245 sq ft to 881 sq ft, including one to three bedrooms.
Another massive new residential project, Yoho West, jointly developed by Sun Hung Kai Properties and MTR Corp, will launch sales in mid-November. Situated atop Tin Shui Wai’s Tin Wing MTR stop, Yoho West is the first of two phases, providing 1,393 of the 1,976 total units.
As evidenced by the recent sales of discounted new flats, there is still a strong demand for housing, and the market is still receptive, said Victor Lui Ting, deputy managing director at Sun Hung Kai Properties (SHKP).
Yet if developers want to sell more units, they need to set very attractive prices, said Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau.
Hong Kong slips among hottest prime residential markets as Manila wins top spot
Hong Kong slips among hottest prime residential markets as Manila wins top spot
In addition, developers need to think of new ways to attract homebuyers, he added.
For example, on Wednesday, in the latest batch of 93 units at SHKP’s Novo Land project in Tuen Mun, the developer promised to return up to 5 per cent of the deal price to buyers if overall home prices in the city fall in the period ending in May 2024. Specifically, buyers will get paid back if the average monthly home price index compiled by the Rating and Valuation Department falls below its level when the purchase is made.
The 93 units will be put up for sale next week at the earliest, the developer said.
“Developers recently adopted attractive pricing strategies and creative payment packages to push sales,” said Norry Lee, senior director of projects strategy and consultancy at JLL. We foresee that market demand would be drawn to the first-hand market. Sales volume in November will bounce back, yet prices in the secondary market will face further downward pressure.”