The discounted average sq ft price is HKD24,300. It is the most expensive new project in Kowloon
Hong Kong Wen Wei Po (By Yan Lunle)
The property market continues to rise, stimulating developers to speed up the pace of project launching, and there will be many new projects target to first housing customers being put on sale in short term. Among them, New World’s Timber House in Ho Man Tin has preemptively announced the prices, and the first price list announced yesterday involving 88 houses is at discount average sq ft price of HKD24,308, with 42 among have the discounted prices lower than HKD 6 million, further more the open style flat in 208 sq ft is at the lowest price of about HKD4.992 million after discount. Wheelock Properties’s LOHAS Park MONTARA in Tseung Kwan O has also obtained the selling license. Developer stated explicitly will speed up the sales, with prices will be announced in a couple days, so the competition will fierce when these two projects both being launched within one to two weeks.
Timber House in Ho Man Tin leading developed by New World announced the first price list of 88 houses yesterday, including 21 open style, 42 one-bedroom and 25 two-bedroom houses in usable areas of 208-526 sq ft, and the prices are from HKD5.943 million to HKD16.638 million, with the usable area sq ft prices at HKD24,959 to HKD 31,631 and the average usable area sq ft price at about HKD28,938. The project is expected to start selling as soon as next week.
Developers describe the prices are "extended prices".
The discounted prices are HKD 4.992 million to HKD 13.975 million with the discounted sq ft prices at HKD 20,963 to HKD 26,568, and the discounted average sq ft price is HKD 24,308, base on the immediately mortgage payment in 180 days and the highest discount is 16%, the highest first batch prices among new projects in Kowloon this year. In fact, developers have previously stated that, due to the recent rise in the property market, both first-hand and second-hand market had recorded new high-priced transactions, so the pricing this time is more aggressive which is described as “extended prices”.
Although the pricing is aggressive, but developer is target to the first housing customers, therefore there are still 42 houses mainly open style and one-bedroom flats are around HKD6 million, accounting for nearly half of the first batch. The cheapest flat of the project is the open style room B5 on the 3rd floor, with an area of 208 sq ft, which is at discounted price of HKD4.992 million and is at discounted sq ft price of HKD24,000. It is worth noting that this project uses online subscription registration this time. The developer explained that this move is to promote environmental protection and digitalization.
Deposits for some houses are as low as 8.5% of the property prices.
In addition, the developer will provide payment method with a low deposit and long payment period. Buyer of house A will only pay 8.5% of the property price within 30 days after signing the temporary contract, and the balance will be paid at the time of the transaction. Taking room A5 on the 3rd floor for example, the discounted price is HKD6.798 million, that is, the deposit in temporary contract is only about HKD 0.57 million, which is a less common payment method in recent years. The project is expected to be completed by the end of February 2021. In addition, the developer also provides a backup second mortgage loan up to 25% of the property price.
Chen Yongjie, the Asia Pacific vice chairman and president of the residential department of Centaline Property, believed that the pricing of Timber House is close to market level, plus the deposits for some houses are lower to 8.5% of the property prices, so these will help young first housing buyers to get into the market, and it is expected that the first batch of houses will be fully sold.
Wheelock Properties does not sloppy facing fierce competition from other new projects. The Executive Director of the company, Huang Guangyao expressed, the LOHAS Park MONTARA in Tseung Kwan O has been approved for pre-sale, the sales of which will promptly be speeded up, so it is hoped the brochure and first price list will be announced in one or two days, and the public visiting will be held as soon as since this Saturday, then the sale estimated to start in the beginning of next month. Asked about developers are aggressive on pricing recently, Huang Guangyao said that the market outlook is optimistic, which is reflected by the pricing of the first batch.
The property market is improving. Except for the frequent operations of New World and Wheelock Properties, Henderson's North Point in North Point and Novum East in Quarry Bay all have new price lists and sales arrangements. The new price list including 29 houses is at an average sq ft price of HKD27,368, with part of them have price increase of 1% to 2%. There will be 30 houses being launched next Monday. The new price list for the Novum East in Quarry Bay includes 48 houses, with an average sq ft price at HKD27,313. It is also scheduled to sell 30 flats next Monday.