New homes in hot demand as second-hand market shunned

Business | Jimmy Ding 6 Aug 2018

Sun Hung Kai Properties (0016) has released another 77 homes at its Park Yoho Milano project in Yuen Long, after 328 units released over the weekend were oversubscribed more than 21 times, due to strong demand and attractive pricing.

The average selling price of the new batch will be HK$15,304 per square foot, 10 percent higher than the previous price list.

SKHP deputy managing director Victor Lui Ting said the higher price was because the units offered more scenic views, and the newly added units are priced without a premium.

The released units come in sizes of 233 sq ft to 927 sq ft and cost between HK$5.64 million and HK$16.96 million, or HK$16,324 and HK$25,382 per sq ft. They will be sold for between HK$4.74 million and HK$14.25 million after discounts, or HK$13,712 to HK$21,321 per sq ft.

SKHP's general manager of sales and marketing Andy Chan said Park Yoho Milano has sold 326 units to date and one-third of the buyers were from Yuen Long.

He added that SKHP will start receiving applications for the newly released units from today and the release of the next batch of units would depend on the response they receive today.

SHKP launched the first 328 units of on Saturday and more than 7,300 buyers submitted bids, making the batch oversubscribed by more than 21 times.

Meanwhile, Centaline Property's 10 major estates recorded six transactions over the weekend, unchanged over the previous week.

Louis Chan Wing-kit, Centaline Property Asia-Pacific residential chief executive, said most property sales were in new projects while investor confidence has been affected by the escalating trade war and Hong Kong's new housing policy.

He said the transactions this month would be dominated by first-hand sales.

Midland Realty residential chief executive Sammy Po Siu-ming also said that new projects in the New Territories have attracted many buyers and the market has responded overwhelmingly.

He expects the second-hand market to stay subdued as cash flows to the first-hand market.

Ricacorp Properties meanwhile said that 10 major estates recorded only four second-hand transactions over the weekend, down 33 percent comparing to six transactions last week.

This is the seventh consecutive week that the number of second-hand transactions in 10 major estates have stayed in the single digits.

Ricacorp Properties executive director Willy Liu Wai-keung said potential buyers were adopting a "wait and see" strategy because of wild fluctuations in the stock market and the new housing policy.

With new projects introduced to the market at attractive prices and second-hand property owners standing firm on prices, transactions in second-hand market will continue to trend downwards.

Liu expects more and more projects to be offloaded onto the market as developers try to avoid the new vacancy tax.

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