Hong Kong Wen Wei Po (By Leong Yuet Kam)
New Projects offer low prices to attract customers in succession, due to the unclear prospects of the Sino-US trade war and the escalation of violent conflicts in Hong Kong. Occupied project Cullinan West III in Nam Cheong Station developed by SHKP and MTR yesterday announced the first price list including 235 units at average sq ft price of HKD27,153, and after deducting the highest discount of 20%, the discounted average sq ft price is HKD21,722, only 2.7% higher than that of the first batch of same series project Cullinan West II at HKD21,152 in November 2017. The lowest discounted price for open style unit of 275 sq ft is HKD6.13 million, and it is HKD6.0562 million after deducting the Fans discounts and extra cash discounts.
According to the price list, the first price list of Cullinan West III includes 235 units in usable areas of 275-1,513 sq ft, with layouts are from open style to four-bedroom, and the sale prices are HKD7.67-50.41million, while the discounted prices are HKD6.13-40.33 million after deducting the highest 20% discount, leading the discounted sq ft prices to HKD19,988-26,659, besides the discounted market value of the price list is about HKD2 billion. Prices are HKD6.0562-40.2352 million after deducting the highest discount and the Fans discounts also the extra cash discounts.
Lui Ting:Pricing decreases due to the slowing down in the property market.
The Vice Managing Director of Sun Hung Kai, Lui Ting describes, the pricing of the first price list of Cullinan West III returns to the level before and is similar to the sq ft price of Cullinan West II’s first batch, and the lower down of the predicted prices of Cullinan West III due to the slowing down of recent property market, while he believes the quality of Cullinan West III is high then buyers are willing to accept the prices, also he reiterates for launching by reasonable prices.
He admits that the effect to the property market from the Sino-US trade war and social events in Hong Kong has caused buyers to wait and see. However, the recent property sales of peers’ recently are ideal, with 300,000 applicants were recorded for the latest phase of Government's HOS, due to the continued low interest rate environment because Federal Reserve System decreased the rate, two-thirds of the owners in Honng Kong had completed the mortgage payment,which is a solid foundation for the property market, also they will launch properties at a reasonable market price in the future.
The Proxy Deputy Manager of SHKP, Tong KamKong expresses, Cullinan West III will start to collect the applications tomorrow, and additionally launch depends on the reaction, while there will be mark up for the additionally launch, also the sales will start next week possibly.
He points out that, Cullinan West III offers three payment methods, including 90-day payment plan, 210-day payment plan, and construction period payment plan. Among them, the 90-day payment plan can enjoy a maximum discount of 20%, and there are discounts for Fans (receive HKD30,000 for buying unit under usable area of 1,000 sq ft, and HKD100,000 for buying unit above usable area of 1,000 sq ft,), and extra cash discounts (cash discount of HKD49,800-99,800, while only for buying two-bedroom units or smaller).
Centaline predicts the rental return to reach 3.5%.
The APAC Vice President and Residential Department President of Centaline Property, Chen WingKit expresses, developers are restrained on pricing being affected by recent social events and the Sino-US trade wars, and the pricing of Cullinan West III’s first price list is 25% lower than the sq ft prices of HKD26,000-30,000 for newly second hand projects in Olympic Station, benefiting the users. The launch this time includes mainly small and medium-sized units, and Cullinan West III is located on top of urban railway, while the sale prices are low to HKD6 million, which can attract users to enter the market. Even though the risk of property prices changes has increased, but the rental return will also increase relatively, and it is expected that the rental return of the project will reach 3-3.5%, attracting investors to enter the market. Even developer additionally launching properties with mark up of 3-5% is acceptable, so it is estimated all 1,172 units of the project will be sold out.
The Chief Executive of the Midland Real Estate Residential Department, Po Siuming expresses, Cullinan West III’s pricing is very competitive, and the base is equipped with large-scale shopping malls, which are well-equipped, so it is estimated users and investors will be attracted. He estimates that the project will be able to rent at about HKD55-60, with the return rate is expected to be about 3%, and it is expected that 30% to 40% of the customers will be investors.
MARINI receives 4,200 applications, an over subscription of 30 times.
On the other hand, LOHAS Park GRAND MARINI and MARINI developed by Wheelock and MTR, put on sale a new batch of 318 units this afternoon, and until the close of the application yesterday, the former received 1,400 applications and the latter received more than 4,200 applications, an over subscription of 6.7 times and 30 times respectively.