Phoenext sales dent secondary market

Wang On Properties (1243) sold about 60 percent of the 165 flats on offer at Phoenext in Wong Tai Sin, helping squeeze the secondary market again.

The new project sold 96 flats on Saturday for HK$480 million in total with the most expensive one fetching HK$7.06 million.

The developer said the response had been "ideal" and it will put more flats on sale as early as today.

Phoenext received 1,160 checks for the 165 flats, making them six times oversubscribed. The flats were priced between HK$3.38 million and HK$7.44 million.

Meanwhile, Emperor International (0163) is offering discounts of up to 12 percent for 25 selected homes at South Sky in Aberdeen. After discounts, they cost between HK$4.17 million and HK$7.3 million or HK$14,590 and HK$ 18,253 per square foot.

The project has a total of 110 homes but only 43 have been sold since its launch in October.

Over the weekend, The Coastline in Yau Tong developed by CK Asset (1113) sold three flats for HK$26.07 million.

And in the luxury market Chinachem's Bisney Crest in Pok Fu Lam also recorded a sale for HK$180 million or HK$41,012 per sq ft.

However, the number of second-hand sales across 10 major housing estates slumped 40 percent weekly to nine, Centaline Property said.

Louis Chan Wing-kit, Asia Pacific vice chairman of the residential division at Centaline Property Agency, said new home sales at Phoenext had attracted buyers, and second hand homeowners had to offer a larger price cuts to compete.

And the 10 blue-chip estates tracked by Hong Kong Property Services saw six deals over the weekend, down by 1 percent weekly.

Mei Foo Sun Chuen in Lai Chi Kok was the best-performing estate with three deals.

Dave Ma Tai-yeung, chief executive at Hong Kong Property Services, said he remained confident in the secondary market as home viewings in all districts remain active.

In other secondary deals, a foreclosed unit at Mei Foo Sun Chuen sold for HK$6.3 million or HK$8,762 per sq ft while a flat at Taikoo Shing in Quarry Bay sold for HK$6.48 million, or HK$12,226 per sq ft, leaving the seller with a loss of over HK$800,000.

Meanwhile, the turnover of commercial buildings surged sixfold to HK$5.76 billion in December over the previous month partly due to a mega purchase by Chinese sports brand Li Ning (2331), with the number of transactions rebounding 20 percent to 61, Midland Realty reported.,

Rents and selling prices of Grade A offices rose 0.5 percent and fell 0.76 percent respectively, and Grade B offices saw rents falling 1.9 percent and selling prices up 0.6 percent.

There were three Grade A office deals including a HK$2.2 billion purchase of the 144,000-sq-ft Harbour East building in North Point by Li Ning. Its average price of HK$15,333 per square foot was above the market rates.

Harbour East will be home to Li Ning's Hong Kong headquarters.

Midland Realty also said Hong Kong's revived Capital Investment Entrant Scheme will benefit sales of small and medium-sized commercial properties, and that turnover of commercial buildings is expected to rise 25 percent this year.