Hong Kong Wen Wei Po (By Ngan LunLok)
‘Dragon Bed’ project T Plus was officially launched yesterday with 344 units, including the smallest flat in Hong Kong of 128 sq ft. The market reaction is hot. It is reported that 339 units had been sold as of 9:00 pm last night, accounting for more than 98% of the saleable units and taking in more than HKD1 billion. Among them, the open style units were almost sold out, reflecting that they were the most popular in the market. The agency estimates that the proportion of users and investors is about 50% in this project, and recently the proportion of young prospective buyers is expected to be 70-80% among the new projects with high proportion of users to investors.
T Plus owned by mainland company Jiayuan International and Tang ShingPo who is called the ‘Shops King’ totally provides 356 units. It had been launched in November last year, but only 2 units were sold because the bad market atmosphere at that time and the market debate of its small sizes and the lack of privileges. After 8 months, the developers re-launch the flats with a number of housing concessions and price cuts of 30-40%, attracting the market focus immediately, and before the opening of the sale it had received 12,000 applications, which is the most for single building project after the implementation of the Residential Properties (First-hand Sales) Ordinance at the end of April 2013.
Open style flats are almost sold out.
The discounted sq ft prices of these 344 units being launched yesterday are HKD13,494-20,196 deducting the maximum discount of 22%, and the cheapest unit is room 31 on the 16th floor, which is open style unit in only 128 sq ft with discounted price of about HKD1.74 million.
Reporters saw on the scene that, there was crowing people lined up on the sales office yesterday morning, and the artist Mak Ming Sze also arrived, market source pointed out that she bought three units. However, the developer is inexperienced resulting in obviously low speed of dealing with the trading, and many prospective buyers complained about the long sale process.
320 units had been sold as of 7:30 pm last night, accounting for more than 93% of the saleable units. Among them, the open style units were almost sold out, reflecting that they were the most popular in the market. According to the data, the project has launched four price lists involving 349 units (344 of which were launched yesterday), of which 276 are open style flats at discounted price of HKD1.738-3.283 million, and about 20 units among are less than HKD2 million.
The estimated rate of investment return is more than 3.5%.
One-bedroom flats are 36 units at discounted prices of HKD3.288-4.291 million; Two-bedroom flats are 36 units at discounted prices of HKD5.118-6.811 million. Together with another feature flat was announced price at the end of last year, there are 347 units (2 had been sold at the end of last year) have been announced prices but have not been sold.
The Chief Executive of the Midland Real Estate Residential Department, Bu Shaoming expresses, their attendance rate yesterday was 80% base in the first 1,000 applicants. The low prices attract users and investors of about half each, and young buyers among account for about 70%, mostly with the help of their parents, also nearly 70% of the customers are from the New Territories. It is expected that the usable area sq ft rent can reach about HKD45-50 after occupation, and the rate of return will exceed 3.5%.
The Senior Business Director of Centaline Property, Fang KaiMing points out that, T Plus attracts a large number of the first time buyers and investors with its low prices and mainly small size apartments. However, he predicts only about 10% of investors would successfully enter the market and the remaining 90% would be users due to the high rigid demand. Most of the buyers are young people born in 1980 and 1990, accounting for about 80%.
First hand transactions were over 500 cases at the weekend.
Over the past weekend, driven by T Plus, a total of over 500 transactions were made, about 65% among are from T Plus. In addition to T Plus, China Overseas’ The Regent in Tai Po had launched 180 units with mark up of about 4-5% in early, and put on sale 332 units last Saturday, including 148 units being put on sale by bidding and the other 184 units by price list, besides 111 units were sold, accounting for 60% of 184 units that were put on sale by price list. Wing Tai’s OMA OMA also put on sale 110 units on Saturday, and 24 units were finally sold.
As for others in first hand property market, 90 Repulse Bay Road has just sold the No. 6 mansion in the form of tender at the transaction price of HKD489,153,280, and the discounted sq ft price was HKD86,240 base on its usable area is 5,672 sq ft. Grand Central (Phase 2) sold high floor room K of Block 5 which in 468 sq ft at transaction price of about HKD11.38 million, with the average sq ft price at HKD24,318. As of 7 o'clock last night, SHKP’s Mount Regency phase II had sold 28 units.