Good sales of launch increases property developers income
Hong Kong developers rolled out new flats at higher prices last week after tighter mortgage rules make purchasing flats in the resale market more difficult. Cheung Kong (0001.HK) put the last 32 flats at La Lumiere on the market after clearing all 76 units in its Saturday sales, 75 of which went in less than an hour.
Midland Realty said half of the buyers were investors with an eye on the juicy rental yield in the long run, which is set to benefit from the Hung Hom estate’s small-flat feature and an MTR Sha Tin-Central line that will pass nearby.
In the final round of sales, the developer will raise prices by over 3 percent, from an average HK$18,795 to HK$19,450 per sellable square foot, a maximum 15 percent discount will be given.
Meanwhile, at The Pavilia Hill, a North Point project jointly ventured by New World Development (0017.HK) and Hip Shing Hong, recorded 19 apartments sold on Saturday and a 1,521 sq ft apartment went for HK$71 million, altogether 48 units were on offer. Its developer followed with another 12 flats, priced 2 to 5 percent higher.
An active primary market contrasted with a sluggish secondary one, though Midland Reality recorded 11 deals at its 10 benchmark estates, up 175 percent from a week ago but most of the transactions took place in more expensive prices.
Prospective buyers were unwilling to foot higher downpayments for homes valued at less than HK$7 million as required by the Hong Kong Monetary Authority and vendors were reluctant to sell their properties cheaper.