2024-04-30 28Hse Editor
The flat sale battle continues. Developed by Sino Land, K. Wah International, China Merchants Land, and the MTR, the first price list of 130 units for the 11th phase of the Lohas Park development in Tseung Kwan O was announced. With a 17-month pre-sale period and 15% discount for 120-day immediate payment, the project’s average price of HK$16,938 square feet is 5.3% and 7.7% lower than the first batch of the previous phases Villa Garda I and II in June and July last year, which were priced at HK$17,888 and HK$18,378 respectively. Leung Yuet-kam
As this phase is the first of the 11 phases launched by Lohas Park to feature open-plan units, the discounted entry fee is as low as HK$4.98 million, the lowest entry threshold for the first batch of Lohas Park flats in the past five years. The developer will also provide two long-term payment methods to attract professionals.
Victor Tin Sio-un, executive director at Sino Land, said that the first batch of flats include six open-plan units, 42 one-bedroom units, 76-unit two-bedroom units and 6-unit three-bedroom units, measuring 283 to 719 square feet in size. After deducting the maximum 15% discount from the project’s 120-day immediate payment scheme, the discounted price ranges from roughly HK$5 million to HK$12.5 million, and the discounted price per square foot ranges from HK$15,699 to HK$18,270. The cheapest unit is room E on the 10th floor of Block 3A, measuring 283 square feet and a discounted price per square foot of HK$17,553.
Tin said that the increase in Hong Kong’s population is a positive sign for strong housing and rental demand. He added that the development would be attractive to both self-occupants and investors.
Long-term payment: a cheaper alternative to immediate payment
In addition to the 120-day cash-on-demand payment method, the developer also offers two payment methods with long transaction periods to attract professionals. Both payment methods are entitled to 4.5% of the transaction amount as a Home Ownership Interest Subsidy (HOS) cash rebate, with the first instalment costing only 10%, which, after taking into account the other discounts of 14% and 13%, results in total discounts of nearly 18% and 17%.
Industry expects to drive new property subscription
Louis Chan Wing-kit, vice chairman and chief executive (Residential) of Centaline’s Asia Pacific department, said that the pricing of Villa Garda III is 8% lower than that of the average price per square foot of the first price list of the previous phase of the project, and 15% lower than first-hand units in neighbouring areas. Coupled with the payment plan for talents which allows them to enjoy a 4.5% cash rebate, the pricing is highly competitive and is expected to drive further subscription of the new flats.
Sammy Po Siu-ming, chief executive (Hong Kong and Macau) of Midland’s residential division, said that the highly competitive pricing of Villa Garda III is expected to further freeze purchasing power in the second-hand market and attract long-term investors to enter the first-hand market. It is expected that the project will cost up to HK$45 per square foot in rental fees upon completion, with rental yield expected to reach 3%, and the number of investors expected to be as high as 30%.
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