Buyers wait and see, and new projects with high selling prices only sold 12.5% on the first day.
(By Leong Yuet Kam)
The consensus on the first phase of the economic and trade agreement reached by China and the United States made Hong Kong stocks rebound and many projects rush to grab market resources, while developers’ pricing is aggressive, plus Hong Kong economy entered a cold winter, also the unemployment rate continued to rise, thus the sales of first-hand properties continued to be dull although Government had relaxed the upper limit for the mortgage insurance for existing houses. After K.Wah’s K⋅Summit in Kai Tak only selling over half (125 units) of the total on the first day at the beginning of this month, China Evergrande launched The Vertex for the average sq ft price up to HKD22,000 which is the highest opening sq ft price in Cheung Sha Wan, and it put on sale the first round of 128 units yesterday, with only 16 units or about 12.5% were sold on the first day according to the market source.
The Vertex that has collected about 480 applications in Cheung Sha Wan put on sale the first round of 128 units in usable areas of about 238-447 sq ft yesterday afternoon, and the discounted average sq ft price in the first price list is HKD21,979, the highest in the first launch for the first-hand projects in Cheung Sha Wan, besides the lowest price for 244 sq ft open style units is HKD5.378 million, also most units are lower than HKD10 million based the construction period payment plan, thus buyers of these units can apply for mortgage insurance of 80% or 90%.
The reporter saw there were only about 50 to 60 prospective buyers waiting in line at 2:15 pm yesterday when was prospective buyers’ registration time at the sales office of China Evergrande Center in Wan Chai. The APAC Vice President and Residential Department President of Centaline Property, Chen Wing-kit expresses, the prospective buyers through their company submitted about 100 applications, and about 30-40 groups of visitors arrived yesterday, 80-90% among are users. He frankly says, buyers and sellers are unable to reach an agreement as the property market weaken at the end of the year, and developers are optimistic about the prospects, while buyers tend to wait for the bottom of the market, leading the first-hand property sales in two urban areas have been slow in this month.
Agent: 80% of prospective buyers are users.
The Chief Executive of the Midland Real Estate Residential Department, Po Siuming expresses, 80-90% of prospective buyers through their company of The Vertex are users, and one-bedroom units are the most popular, besides Kowloon customers account for 60% while New Territories customers account for 30%. Looking at the outlook for the property market, Chen Wing-kit points out that the increase in the first half of this year has been offset by the decline in the second half of the year, while there is a preliminary agreement on the Sino-US Trade war, so it is estimated the market situation will start again next year, with a rise of 2-3% in the first quarter and 10% for the whole year.
Alto Residence adds discounts and launches a 4-year transaction period.
Other projects having existing properties inventory add discounts for promotion. Alto Residence developed by Imperial Group and Lai Sun Development in Tsueng Kwan adds discounts for its 9 tiered houses. The Senior Vice President of Lai Sun Development, Poon Yui-Man expresses, they will increase the discount for 180-day cash payment plan from 7% to 11 %, and newly adds 1440-day free payment method, which is 4-year transaction period, also buyers can move in after paying 10% of the property price and a 5% permission fee. He points out that the project has sold 583 units cumulatively and took in more than HKD6.2 billion, and currently there are only 9 units of tiered houses and 13 units of villas left, also it is believed that the new discount plan can help to attract buyers to enter the market.
Pan Ruimin estimates that the property market will adjust by single-digit percentage points in the first half of next year, but with the easing of social conflicts in Hong Kong and the implementation of the first phase of the Sino-US trade war agreement, the property market is still optimistic in the second half of next year. He also points out that the market has recently reduced demand for large units, and he has doubts about the government's continued introduction of vacant taxes on the first-hand property.
Last Friday, the site of No. 135 Tai Hang Road received 25 tenders and became the official residential land on Hong Kong Island receiving the most tenders. Lai Sun Development also cooperated with Sino and K.Wah to take part in the bid. The Senior Vice President of Lai Sun Development, Lam Ho-yee points out that the group is confident in the tender since it had had development in Tai Hang Road.
Chinachem’s Sol City in Yuen Long adds a discount of HKD188,000 for designated two-bedroom units, involving 19 units. The Sales Department Director of Chinachem, Ng Sung-mo expresses, this new concession will benefit the two-bedroom units in block 1, and the sales arrangement of 18 units has been launched. The project has opened the sample flat for the public to make an appointment to visit, and it is expected that the building can be occupied next year.
Phase 2 of MOUNT NICHOLSON developed by Wharf and Nan Fung in The Peak yesterday sold the 9th floor in block D for HKD528.54 million, and the sq ft price is HKD115,000 based on the usable area of 4,596 sq ft.
