Hong Kong homebuyers continue to be enticed by discounts as they snapped up flats at Sun Hung Kai Properties’ (SHKP) new project in Yuen Long on Saturday.
Out of 210 units at SHKP’s Yoho Hub II, 160 or 76 per cent were sold as of 3.30pm Saturday, according to agents.
The units put up for sale included 81 two-bedroom flats and 129 three-bedrooms units, with areas ranging from 466 to 905 sq ft. The discounted prices ranged from HK$6.83 million to HK$13.33 million, translating to HK$13,008 and HK$16,214 per square foot. The average price per square foot after discounts was HK$14,550.
The cheapest unit is a two-bedroom with an area of 467 sq ft. The discounted price per square foot was HK$14,624.
Hong Kong stocks at 8-month highs on China property relief, US rate cut hopes
Hong Kong stocks at 8-month highs on China property relief, US rate cut hopes
The project, located above Yuen Long MTR station, comprises two residential buildings providing a total of 939 units.
Last month, SHKP priced its first 188 units at the same location about 30 per cent lower than the first phase.
The average price per square foot of these first 188 units was HK$14,338 after discounts, compared with HK$19,899 for the first batch of 206 units launched in December 2021.
The sales office was crowded with enthusiastic buyers, said Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau.
“The project’s opening price is very attractive to all kinds of buyers, including many young millennials, who accounted for about 70 per cent of the total number of buyers,” he added.
He expects the first round of units will be cleared on the first day as some buyers intended to spend HK$26 million to enter the market.
Po said that as the Yoho Hub ll has already been completed, and the living facilities are mature, it is expected that rent per square foot can reach about HK$50, with a rental return of 4 per cent. He added that investors may account for 30 per cent of buyers.
New residential developments have continuously adopted a low market price strategy to attract homebuyers, Po said.
The primary housing market continued to be robust in May, the third month after the withdrawal of all property cooling measures. Interest rates have peaked and Hong Kong stocks made gains this past week, which are both favourable to the property market, according to Louis Chan Wing-chit, CEO of the residential division at Centaline Property Agency.
This month’s first-hand transactions could reach 2,500, compared to 1,800 last month, Chan said.
SHKP said earlier that the group will launch Phase 3 of Novo Land in Tuen Mun in the next two months, phase 2 of Yoho West at Tin Wing Station and a luxury residential project 233 Prince Edward West in the third quarter.