Hong Kong developers line up home sales at heavy discounts to clear unsold stock, fearful of further price cuts in a watchful market
- CK Asset, Sino Land and Henderson Land together plan to sell a total of 223 flats this weekend
- CK Asset will sell 35 premium units at its Coast Line project in Yau Tong at prices ranging from HK$7.98 million to HK$12.9 million
Some of Hong Kong’s biggest developers have lined up sales of residential projects with revised price lists, using the recent prices as a benchmark to attract cautious buyers.
A total of 223 units in five projects on Hong Kong Island, Kowloon and the New Territories will be on offer this weekend.
“The housing market had been very quiet until Coast Line project in Yau Tong,” said Derek Chan, head of research at Ricacorp Properties. “The developers are now testing homebuyers’ appetite with prices that are close to or below market prices, using Coast Line as a reference.”
Discounts will be their go-to strategy to clear stock, he added.
CK Asset Holdings, Li Ka-shing’s property flagship, has found success with its reduced pricing strategy, selling 832 of the 886 units on offer at the Coast Line, raking in HK$5.36 billion (US$684 million) in the process. The flats were priced at an average of HK$15,530 per square foot, which attracted thousands of homebuyers who bought all the units in phase II on the first day of sale on August 12, and 95 per cent of phase I flats last Sunday.
