NewDevelopers scramble as abundant supply and soft government land tender point to changing fortunes in the luxury sector
About 3,100 luxury units are set to be marketed in Kowloon soon, experts say
Property developers are ramping up marketing efforts for high-end properties ahead of a big batch of new releases in coming weeks and on the heel of a government land tender in Stanley on Tuesday that came in well below expectations.
Cheung Kong Property released the sale of The Zumurud in Ma Tau Kok at lower than expected prices on Wednesday, prompting other developers to speed up marketing on four luxury projects beginning Thursday.
These include two in Ho Man Tin - Sun Hung Kai Properties’ Ultima phase two development and Kerry Properties’ Mantin Heights. In addition, HKR International and Nan Fung Development will promote its project in Kau To Shan, Sha Tin, while Paliburg and Regal International plans to kick off the marketing for its villa development in Yuen Long.
“It shows developers are eager to increase their sales before the buying demand dried up,” said Alfred Lau, an analyst at Bocom International.
CK Property released the price list for the first batch 50 units at 228-unit The Zumurud at between HK$25,826 and HK$27,369 per square foot. Factoring in a maximum discount of 12.2 per cent, the selling price would be as low as HK$22,671 per square foot.
“This project could pitch at HK$30,000 per square foot previously but now have to come down to HK$20,000 plus per square foot,” said Lau, pointing out its profit margin could be squeezed to 20 per cent, from previous 30 to 40 per cent.
