Advertisement
Hong Kong property
Business

Homebuyers snapping up flats because of discounts, market has too much stock for price increases, analysts warn Hong Kong developers

  • Only reason homebuyers have been snapping up all units at recent project launches is the discounts developers have been offering, JLL’s Joseph Tsang says
  • Great Eagle Holdings has announced a new higher price list for another 150 units at its Onmantin project

Reading Time:2 minutes
Why you can trust SCMP
5
Hong Kong property developer Great Eagle Holdings’s Onmantin project in Hong Kong’s Ho Man Tin neighborhood. Photo: Handout
Salina Li

Hongkongers are less willing to buy homes amid price increases at new launches by developers, analysts said after Great Eagle Holdings announced a new higher price list for another 150 units at its Onmantin project on Monday.

Advertisement
The developer sold all 260 units on offer at the project atop the Ho Man Tin MTR station during a first round of sales on Saturday. The new list for flats ranging from one to three-bedroom units, ranging in size from 340 sq ft to 783 sq ft, prices them from HK$7.01 million (US$895,618) to HK$19.4 million, or HK$18,597 to HK$28,350 per square foot, after discounts.

The new price list is about 10 per cent higher than the discounted price per square foot released in the first list.

“The main and only reason why homebuyers have been snapping up all units at recent project launches is the discounted prices developers have been offering,” said Joseph Tsang, chairman of JLL in Hong Kong.

“Once developers increase prices for subsequent units, the sales slow down,” Tsang said. “[This is] because there is too much stock in the market.”

Advertisement

Buyers have many choices and there is, therefore, a lower acceptance of price increases, he added.

Advertisement