Hong Kong homebuyers stay away from Friday sale as developers move to clear unsold units amid seven-year low in deals

The article titled 'Hong Kong homebuyers stay away from Friday sale as developers move to clear unsold units amid seven-year low in deals' discusses the current state of the property market in Hong Kong. The government had hoped that by easing some restrictions on property sales, there would be a significant increase in home purchases. However, the results have been moderate at best. On Friday, a housing project in Tseung Kwan O saw only five out of 129 units sold, despite a 15% discount on prices. The project, Villa Garda III, is a joint venture by Sino Land, K Wah International and China Merchants Land. It comprises a total of 644 units and is situated in the Lohas Park neighbourhood. Since its initial sales launch in late August, 134 flats have been sold for a total of HK$1. 08 billion (US$138 million), according to the developers.

The most recent price list includes 65 newly launched units with sizes ranging from 442 sq ft to 719 sq ft. After a 15% discount, prices vary from HK$7. 38 million to HK$12. 9 million, averaging HK$17,165 per square foot. On Tuesday, a project near the Chinese University of Hong Kong managed to sell more than half of its available units. Developers and agents are optimistic that the residential property market will see increased activity in the near future. Buggle Lau Ka-fai, chief strategist at Midland Realty, stated, 'I believe together with the new policy, developers will pick up the sales of new homes in order to capture buying power. ' He added that developers are likely to accelerate the launch of new projects and clear unsold units in the fourth quarter.

Victor Lui Ting, deputy managing director at Sun Hung Kai Properties (SHKP), echoed this sentiment, predicting that transactions will become more active in the fourth quarter and the property market will stabilise or improve. 'Although the government did not [completely] remove the property curbs, the message is positive,' he said. On Tuesday, SHKP's University Hill development in Tai Po district sold 47 of its 88 new units on sale, according to agents. The market value of the 88 flats is about HK$700 million. The development, located at 63 Yau King Lane in Pak Shek Kok, is in close proximity to the Chinese University of Hong Kong, Hong Kong Science and Technology Park and the proposed Pak Shek Kok MTR station on the East Rail line. It comprises a total of 607 flats ranging from 206 sq ft open-plan units to 851 sq ft three-bedroom units. Prices after a maximum 15% discount range from HK$3. 2 million to HK$11. 04 million, or HK$13,785 to HK$18,262 per square foot. The discounted average price per square foot is HK$16,458. The cheapest flat of the batch is a 217 sq ft studio selling for HK$3. 2 million. The latest price list was released after a lapse of five months since the project's first launch in May, the developer said. SHKP also launched 41 units for sale by tender on Friday. Property transactions in October dropped to a seven-year low of 2,925 deals, and are likely to hit a 33-year low this year, according to Centaline, one of the city's largest property agencies. Meanwhile, the number of first-hand private residential units that may be available in the next three to four years increased by 2,000 as of the end of September, to a record high of 107,000 units, compared with an estimate of 105,000 issued at the end of June, the Housing Bureau said on Monday.