Hong Kong Wen Wei Po (By Liang Yueqin)
After the Lunar New Year holiday, developers became aggressive on pricing because the urban tiny house sales regained boom and the second-hand property prices began to rise. Hung Hom tiny house project The Vantage with pre-sale period in two years yesterday announced the first prices list including 111 units close to the second-hand property prices in the same district, and the discounted average sq ft price was HKD 19,976, higher 15% compared to the discounted average sq ft price of the first batch of Sun Hung Kai’s Downtown 38 in Ma Tau Kok, besides the open style unit in 196 sq ft is HKD 3.82 million the lowest after discount. Developer Henderson Land offers first mortgage in 90% for customers of 30 units in open style and one-bedroom with a discount of 6%.
‘The pricing in The Vantage’s first price list is reasonable. At present, the transaction sq ft price in Kai Tak has reached HKD 30,000, and the transaction sq ft price of the same series project Reach Summit in Yuen Long also up to HKD 18,000 in this month, which is close to the opening discounted sq ft price of Hung Hom The Vantage, plus property market is warming up, so I believed the target sq ft price of The Vantage should reach HKD 26,000-27,000 at least, also there will be large mark up space in additional launch.’ the acting general manager of Henderson sales department (1), Lin Damin described.
The lowest price for open style unit is HKD 3.82 million.
He also pointed out that this project will collect applications and open sample units to public since today at the soonest, while the sales will start in the first half of next month.
The first price list of The Vantage is related to 111 units, including 23 units of open-type, 69 units of one-bedroom and 19 units of two-bedroom in areas from 196 sq ft to 391 sq ft, with the sale prices ranging from HKD 4.15 million to HKD 8.65 million, and the total market value is about HKD 658 million. The maximum discount of the project is 8%, leading the discounted prices from HKD 3.82 million to HKD 7.96 million. Among them, the discounted prices of most one-bedroom units are less than HKD 6 million, and the discounted prices of 7 open-type units are less than HKD 4 million.
At the same time, to meet the needs of the first housing people. ‘Customers of 30 units in the first batch will gain the first mortgage in 90% from developer, including 16 units in open-style and 14 units in one-bedroom, with mortgage interest rate is P-1.8% in the first two years (Current P is 5.125%) and P-1.125 in 25th to 36th month then P+1% after; And the mortgage for the rest units is 85% of the property price at the most.’ Lin Damin said. According to the price list, these 30 units in areas from 196 sq ft to 270 sq ft are in discounted prices from HKD 4.1 million to HKD 5.86 million after discount of 6%.
Compared with new project in the same district City Hub developed by Chevalier and Pionsonic with the discounted average sq ft price in HKD 19,151 of the first batch in last January , the sq ft price of The Vantage’s first batch this time is 4% higher. Compared with Sun Hung Kai’s Downtown 38 in Ma Tau Kok which was in discounted average sq ft price of HKD 17,288 for the first batch in last month and has a pre-sale period over one year, its sq ft price is 15% higher. At present, the second hand average discounted sq ft price of nearby project Upper East which was just occupied is HKD 18,300, while the second hand average sq ft prices of VIVA and Axis are HKD 20,300 and HKD 22,300 respectively, it is showed The Vantage’s price is close to the second hand sq ft prices in same district.
Centaline estimated potential customers of eResidence will be attracted to this project.
‘The prices in the first price list are close to the latest second-hand property prices in the same district, but the project offers multiple concessions, flexible payment methods, and high-percentage mortgages, plus the prices are low and rare in the same district, so it is believed that it can attract the first housing people and investors to enter the market.’ the vice president and head of the residential department of Centaline, Chen Yongjie expressed. ‘The Vantage has same customer sources with nearby Starter Homes scheme project eResidence, so it may attract some potential buyers to turn to The Vantage, and it is expected that the developer will additional launched more, the prices of which will also be acceptable even the mark up is 3-5%.’ , he added.
Bu Shaoming, the chief executive officer of residential department of Midland, expected the sq ft rent of The Vantage will up to about HKD 65 after occupation and the return rate will above 0.35% per month.
AVA 228 sold 5 units on one single day.
In addition, the tiny house project AVA 228 in Cheung Sha Wan, developed by senior investor Mr. Wah Lo's company and exclusive sold by Midland, sold 5 more units yesterday, and a total of 57 units had been sold taking in nearly HKD 200 million. Among them, more than 80% of buyers purchased open-style units, and three groups of buyers even bought two units. This project starts the second round sales involving 30 units today by first-come first-served basis.
Sol City sold 53 units last night.
Sol City in Yuen Long developed by Chinachem and MTR put on sale a batch of 150 units last night, with the discounted lowest price for one-bedroom unit of 319 sq ft in HKD 5.34 million, and source pointed 53 units were sold. Artist Ava Liu also appeared in the sales office in Tsuen Wan Nina Tower Shopping Mall yesterday, but she was not able to choose the favorite one due to the number was over one hundred, some agent pointed.
Altissimo in Ma On Shan developed by Country Garden, Hong An Real Estate and CSCEC also put on sale 30 units in public and launched 90 units by daily bidding, and source pointed 26 units in sq ft prices from HKD 14,973 to HKD 19,265 were sold yesterday.