K Wah launches flats amid feared price falls

Business | Tereza Cai 4 Dec 2019

K Wah International (0173) will launch 228 apartments in K Summit at Kai Tak on Saturday, with an average price of HK$24,110 per square foot, 5.3 percent higher than the first price list of the 208 units put on sale last week.

Knight Frank Hong Kong expects local residential properties' prices to fall by 5 percent next year overall, while luxury and super-luxury home prices are projected to remain stable.

The government's land sales for this fiscal year was estimated at around HK$130-135 billion, possibly failing to meet the target of HK$140 billion due to the scrapped tender of the commercial site in Kai Tak and reducing land premia, it added.

Moreover, the vacancy tax on properties and rising supply in the market would impose pressure on the land premia collection, said Thomas Lam, the executive director at Knight Frank Hong Kong.

He also predicted that the land sales' downward trend would continue and likely hit a 5-year low next fiscal year at HK$100-120 billion.

Meanwhile, Lam also forecast that rentals on Hong Kong Island would fall 6-8 percent next year.

In the office market, Harbour East, an office building developed by Henderson Land (0012) located where Newton Hotel used to be near Fortress Hill MTR Station, has officially launched for leasing after acquiring the occupancy permit.

It is expected that tenants will be able to move in by January next year, said Paul Yien, head of landlord representation at JLL, which is the joint lead agent for leasing.

He added that the eighth floor has been leased out to a manufacturer which moved from Wan Chai.

In the residential market, Chinachem Group launched 14 units sized at 1,600 sq ft at University Heights in Mid-levels with a minimum rent of HK$88,000 per month.

And K&K Property Holdings announced to will put 13 houses on sale, which were originally leased after completion in 2006. The houses are all three-stories high, with sizes ranging from 2,356 sq ft to 2,395 sq ft.

Elsewhere, a local investor bought nine units at Ontolo in Pak Shek Kok, developed by Great Eagle (0041), for HK$304 million.

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