A Hong Kong developer has priced a new project in the New Territories at an eight-year low, as companies press on with their low-price strategy to entice buyers amid a slump in market sentiment and a slowdown in transactions.
Early Light International (Holdings), which is controlled by billionaire “toy king” Francis Choi Chee-ming, on Monday released the price list of the first 139 units of Gold Coast Bay The Uppland in Tuen Mun at an average of HK$9,988 (US$1,280) per square foot.
Nan Fung Group, which launched the nearby Ori in September 2016, priced the first batch of 134 flats at HK$8,826 per square foot.
Last Friday, New World Development and Far East Consortium cut the prices of flats in Pavilia Forest I in Kai Tak to the lowest in nearly eight years, as Hong Kong’s developers rely on discounts to attract buyers amid a housing market slump.
The Uppland’s price list includes 72 studios, 58 one-bedroom units and nine two-bedroom flats, with areas ranging from 206 to 444 sq ft. The cheapest unit, a 206 sq ft studio, is priced at HK$1.84 million, or HK$8,942 per square foot, rising to HK$4.37 million for the biggest flat.
The Uppland, comprising two residential buildings with a total of 692 units, is 33 per cent cheaper than the first batch of flats at the nearby Skypoint Royale project developed by Hong Kong Ferry and Empire Group.
Early Light said on Monday that it had taken into account the prices of nearby projects and lived-in homes in the district to arrive at the pricing.
The company has taken into account the project’s strengths and has priced the units in line with the prevailing market situation, said Raymond Lee, managing director of the property development department at Early Light.
When asked whether the company would break even on the project, Lee said “we believe that in the end it will be profitable”.
Amber Place residential project in Cheung Sha Wan. Photo: Edmond So
In another development, Continental Properties on Monday slashed the prices of the first 30 units at Amber Place in Cheung Sha Wan by another 17 per cent to align with new projects in the area.
“The price adjustment is as per the current market sentiment,” Continental said in an emailed reply to the Post’s query, adding that a further reduction will depend on the outcome of the sales.
Since the launch of Amber Place on June 22, the developer has not managed to sell any of the 30 units.
Continental has adjusted the average price from HK$18,755 to HK$15,629 per square foot, in line with the average price of the first 138 units at Henderson Land’s Belgravia Place, launched in the same neighbourhood in March at HK$15,986 per square foot.
All 138 units in Belgravia Place were sold within four hours of the launch.
