2024-05-06 28Hse Editor
The first half of the year saw a 35 per cent year-on-year increase in the number of first-hand transactions of around 6,377 units, with the local property market riding on the positive news of the resumption of customs clearance. Looking ahead to the second half of the year, industry insiders estimate that more than 14,800 new units will be put up for sale, with the Northern Metropolis and Kai Tak areas being the two main areas of focus. The Government's intention to further relax the mortgage arrangements for first-time buyers is expected to boost the property market in the second half of the year, as the Top Talent Pass Scheme and other talent policies will boost demand for housing. But with the uncertainty of interest rates, developers launching new flats will still adopt a rotational sales strategy of opening at 10 to 20 per cent lower. Leung Yuet-kam
As one of the key areas of new supply in the second half of the year, at least five new developments totalling over 4,700 units will be launched in the Northern Metropolis. Asia Standard’s High Park I and II in Hung Shui Kiu have both been approved for pre-sale and will be launched this month at the earliest, offering a total of 1,025 units, with the former accounting for 623 units, over 70 per cent of which are two-bedroom units. In addition, Phase C of Sun Hung Kai Properties’ (SHKP) YOHO Hub at the MTR Yuen Long Station (939 units) and Phase One of the Tin Wing Stop project at Tin Shui Wai (1,393 units), Road King Infrastructure’s Hoi Wo Shan (“凱和山”) project in Tuen Mun (693 units), and Grand Mayfair III at MTR Kam Sheung Road Station (680 units), a joint venture between Sino Land, K. Wah and China Overseas, are planned for sale.
With 1,393 units, Tin Wing Station project offers the most flats
Another key supply area is Kai Tak, with at least five new developments totalling over 3,600 units lined up for sale. First up is HENLEY PARK at Kai Tak, a 740-unit development by Henderson Land, which was the first to start selling 228 units in the first round last Saturday (1st of this month). The first round of 228 units was launched last Saturday (1st of this month), followed by Phase One (256 units) of Sun Hung Kai's Cullinan Harbour on the Kai Tak runway, which is expected to be put up for tender this month. Phase One of Kai Tak’s Cullinan Sky is also available for sale, offering 906 units ranging from open-plan to four-bedroom units. In addition, KT Marina 1 in Kai Tak (1,017 units) and Twin Victoria (702 units) – both developed by K. Wah, Sino Land, and China Overseas – are scheduled to be launched in the next six months.
Wong Chuk Hang LOHAS Park Project Recap
The Southside at Wong Chuk Hang MTR station is also offering a large supply of flats. The joint development of Kerry, Sino Land, Swire Properties and MTR will provide a total of 800 units in Phases 4A and 4B, featuring two- and three-bedroom units. The former has already uploaded its sales brochure and is expected to go on sale in July. Meanwhile, CK Asset and the MTR's The Southside Phase 3 development is expected to go on sale this quarter, offering 1,200 units starting from two-bedroom units.
LOHAS Park in Tseung Kwan O, another MTR development, will also be putting up two new developments for sale, namely LOHAS Park Phase 12 (1,335 units) by Wheelock Properties and Villa Garda III (644 units) by Sino Land and K. Wah in partnership with China Merchants Land.
Developer racing to sell units at lower prices
Sammy Po Siu-ming, Midland's chief executive (Hong Kong and Macau), said that with the recovery of the economy, developers will continue to actively promote properties in the second half of the year, with an estimated 9,000 to 10,000 transactions and 16,000 for the year. He believes that in the second half of the year, in areas with a large supply of new properties, large developers with a heavy inventory will continue to adopt a rotational sales strategy of opening at 10 to 20 per cent lower, while developers with less land and luxury properties will be reluctant to sell and will prioritise price over volume sold.
Ricacorp chief executive Willy Liu Wai-keung said that schemes such as the Top Talent Pass Scheme would certainly boost demand for housing. At the same time, the Government's plans to further relax mortgage rules for home buyers is expected to boost the property market in the second half of the year. Furthermore, the number of first- and second-hand private residential transactions is expected to continue to rebound, with 31,000 cases expected. He believes that with the continuation of customs clearance and further economic and employment rate improvement, small- and medium-sized residential property prices will rise by another 5 per cent in the second half of the year, while luxury properties are expected to record a 3 per cent increase.
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