LOFTER Group (the Group) has achieved remarkable sales results in its latest real estate development, Elize PARK. The Group has witnessed an overwhelming response from buyers, with over 50% of the units being sold within a span of just one month after the Hong Kong government’s announcement to lift all cooling measures in stamp duty. Among the transactions made, the unit rate ranged from HK$22,125 to HK$29,025 per square foot, which outperformed other developments with similar offerings at the same time. The encouraging sales results came after the favourable government policy on stamp duty coupled with Elize PARK's market positioning and sales strategy.
Elize PARK, boutique residential development in core urban area, is positioned to be an affordable luxury
Elize PARK, LOFTER Group’s first boutique residential development in core urban area of Mong Kok East, is situated in the heart of Kowloon, enjoying a prime location with convenient access to both Prince Edward and Mong Kok East MTR Station, both being just around 2 minutes' walking distance away. The superb connectivity ensures easy transportation and seamless connectivity to the rest of the city.
"We are thrilled with the exceptional sales results of Elize PARK. The affordability, combined with the exceptional quality and features of the development, has played a significant role in attracting buyers from diverse backgrounds," said Carol Chow, founder and chairperson of LOFTER Group. "The overwhelming demand and positive feedback we received from buyers further validate our commitment to deliver world-class living experience that combines luxury, comfort, and convenience."
Adding to its allure, Elize PARK benefits from its proximity to an upcoming 1,520,000 square feet commercial landmark architecture. This locality promises to bring a vibrant mix of retail, dining, and entertainment options, further enhancing the appeal of the area. Together with the existing retail malls surrounding Elize PARK, residents will enjoy a wealth of shopping and leisure options right at their doorstep.
The project's marketing plan and sales strategy
Elize PARK was first launched to the market in late-January 2024, when the residential market was less active, and Elize PARK being one of the first developments launched in 2024 successfully caught attention from the media, property agents and potential purchasers. After the relaxation of the cooling measures in stamp duty at the Budget Speech by the Hong Kong government in February 2024, Elize PARK, being a core location residential project, was greatly benefited. 12 units out of a total of 52 units were sold in just 4 days’ time with sales proceeds of over HK$80 million. The development then attracted bulk purchasers, including one purchaser buying 2 whole floors in the development, and another purchasing one whole floor in the mid-floor zone.
These sales record successfully attracted attention in the market and the Group then adopted a strategy to look for higher price rather than focusing on quantity and the latest transacted unit was at HK$29,025 per square foot. Within a month after all property market cooling measures were axed, over 50% of Elize PARK units were sold with sales proceeds of over HK$200 million. The sales results distinctly outperformed the other competitors in the market.
LOFTER Group has adopted a flexible sales strategy with all residential units being sold by tender, which is not the most common in Hong Kong. Elize PARK was initially launched with a price list with an average unit price of HK$26,688 per square foot featuring 30 units. When compared to other new developments in the same district, though with different specifications, Elize PARK was recognized as being priced 25%-30% higher. This strategy successfully positioned Elize PARK as a high-end product with a high-priced launch.
LOFTER Group later adopted a new sales strategy to be sold through a tender bidding process instead of sticking with the price list released. For developers, benefits of tender include the potential to secure the highest bid and retain the option not to sell if the desired price is not reached, potentially maximizing profits. Developers also maintain control over the timing and pace of the sale. For buyers, tender is time-efficient, eliminating the need to queue and wait for registration or unit selection. It also allows buyers to focus on units they are interested in, reducing the likelihood of impulsive decisions.
“Elize PARK stands out among new developments due to its unique location, shorter presale period and limited offering of only 52 units total, making it a rare project,” said Alvin Leung, Director of LOFTER Group. “The tender process offers more flexibility and better aligns with the product's target market and buyers' needs, attracting a wide range of clients eventually, including local and Chinese investors and end-users, bulk-purchase buyers and even a renowned local artist.”
LOFTER Group built a solid track record throughout the past years
LOFTER Group currently manages 8 redevelopment projects spanning across residential, retail, office and industrial asset classes with a project-under-management valued over HK$12,000 million, covering a wide investor base from high-net-worth individuals, to family offices, to local fund houses, and to institutional real estate funds. The Group's latest acquisition in core Tsim Sha Tsui, was partnered with two international funds, BentallGreenOak and Schroders Capital, to redevelop the site into a Grade-A landmark commercial tower in the heart of Hong Kong.
LOFTER teams displayed a strong capability in strata-titled acquisition, construction project management, sales and marketing in the Hong Kong property market. The Group is one of the fastest emerging players in the Hong Kong real estate market. With its solid track records, LOFTER Group is set to expand further targeting to take up more landmark projects in Hong Kong.
