2025-11-03 28Hse Editor
The Spring Garden residential development in Wan Chai has become the highlight of Hong Kong's property market following the recent interest rate cuts. Despite a slight slowdown in overall property transactions over the weekend (1–2 November), the development stood out with an impressive performance, selling all 60 units in its first round of sales within just two hours. This accounted for nearly 70% of the project’s total 88 units and generated over HK$560 million in revenue.
Spring Garden Sells 60 Units in Two Hours, Attracting High-Spending Buyers
Developed by Wheelock Properties, Spring Garden is the first new project to launch in Hong Kong after the US rate cuts. During its first round of sales over the weekend, 60 units were offered via a price list, and all were sold within two hours. This accounts for nearly 70% of the project’s total 88 units, generating over HK$560 million in revenue.
According to the developer, all buyers were large-scale investors, with 10 groups purchasing entire floors, highlighting a growing confidence in property investment.
Several buyers were Mandarin-speaking mainland clients. For example, Mr. Tao from Chongqing stated that he was attracted by the project’s excellent transport links and comprehensive amenities, purchasing four units solely for investment purposes. Another group of frequent cross-border travellers said they had been searching for a property in a core area with mature facilities for nearly a year and believed that Spring Garden’s rental yield could reach HK$100 per square foot.
Centaline Property recorded five groups of buyers purchasing entire floors, including a combination of one two-bedroom unit and three one-bedroom units. The biggest buyer spent nearly HK$39 million, mainly for long-term rental purposes, with an estimated rental yield of around 4%. Midland Realty’s residential division CEO Sammy Po also noted the positive market sentiment, highlighting that Spring Garden’s status as a completed project allows buyers to move in immediately, attracting both end-users and long-term investors. The split between these two buyer types was roughly 50/50. This marks the second time in two weeks that a new project in the area sold out on its first day, following the successful launch of the nearby woodis project on 18 October.
Luxury Property Market Sees High-Value Transactions
Meanwhile, the luxury property market continues to record significant transactions. On Sunday, Phase 2 of Cullinan Sky at Kowloon Station, developed by Sun Hung Kai Properties, sold three units via tender, generating over HK$167 million in a single day.
The transactions included a four-bedroom, two-ensuite unit with a car parking space on the 32nd floor of Tower 1, with a saleable area of 1,808 square feet, sold for HK$73.8 million at HK$40,821 per square foot.
A similar unit on the 40th floor of Tower 2, featuring a private lift lobby and a saleable area of 1,365 square feet, sold for HK$49.34 million at HK$36,147 per square foot.
Finally, another four-bedroom unit with a utility room, spanning 1,227 square feet, sold for HK$44.7 million at HK$36,430 per square foot, including a car park.
These high-value transactions highlight the continued strong demand for top-tier properties, which are benefiting from lower interest rates and the wealth effect.
Second-Hand Market Under Pressure as Blue-Chip Estate Transactions Hit Record Lows
While the overall market sentiment has improved, the strong sales performance of first-hand projects like Spring Garden has diverted purchasing power away from the second-hand market. As a result, transaction volumes in major estates have dropped significantly. Over the weekend, Hong Kong’s four biggest real estate agencies recorded sharp declines in transactions at their top 10 blue-chip housing estates. Ricacorp Properties and Midland Realty recorded 11 and 10 deals, respectively, representing declines of 31% and 47.4% week-on-week. The situation was even worse for Centaline Property and Hong Kong Property, which registered only 8 and 3 transactions, down 55% and 70% compared to the previous week, hitting 8-week and 13-week lows, respectively.
In the Taikoo Shing estate on Hong Kong Island, only a handful of transactions were recorded. For instance, a high-floor unit in Tung Hoi Mansion, measuring 572 square feet with a two-bedroom layout, sold for HK$8.6 million, equating to a price of over HK$15,000 per square foot. The original owner, who purchased the unit for HK$5.22 million in 2011, held the property for 14 years and saw a capital gain of HK$3.38 million, an appreciation of nearly 65%.
In the New Territories, Kingswood Villas also saw occasional transactions. A mid-floor unit in Block 2 of Kenswood Court, measuring 630 square feet with a three-bedroom layout, sold for HK$5.22 million. The original owner, who purchased the unit for HK$2.22 million in 1994, held the property for 31 years, earning a capital gain of HK$3 million, a 1.3-time increase in value.
Outlook: Market Confidence Rebounds, with Optimism for Future Growth
In summary, while the recent interest rate cuts have boosted market confidence, the overall transaction volume remains subdued due to a lack of new large-scale projects. However, many real estate agencies and developers are optimistic that the effects of the interest rate reduction will gradually take hold in the coming weeks. Combined with the wealth effect from a steady rise in the local stock market, both end-users and long-term investors are expected to re-enter the market. As capital continues to flow back into the property sector, first-hand buyers are anticipated to return to the second-hand market as well, potentially leading to more active transactions and steady growth in property prices.
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