Hong Kong developer Wheelock cuts price of new project, sparks fears of faster-than-expected correction in property market
- Company prices Tseung Kwan O project 8 per cent below properties sold in the area just two months ago
- Social unrest has had ‘a significant impact’ on market, chairman says
Hong Kong developer Wheelock Properties has sparked fears of a faster-than-expected correction in the world’s most expensive property market by pricing a new project in Tseung Kwan O 8 per cent below properties sold in the area just two months ago.
It has priced a first batch of 130 flats at the 674-unit Marini development, in Lohas Park, at an average of HK$14,997 (US$1,912.9) per square foot, after a 21.5 per cent discount.
“The social unrest in the past two months has had a significant impact on the property market. It is a happy price [for Marini],” Stewart Leung, the Wheelock chairman, said on Thursday. He said the price was about 7 per cent to 8 per cent below that of units sold at the last batch of Wheelock’s Montara and Grand Montara developments, which sold out in a short period.
“Undoubtedly, developers will offer units at low prices at a time of poor market sentiment, which will stir up competition for buyers,” said Vincent Cheung, managing director of Vincom Consulting and Appraisal. He said he expected home prices will drop as much as 5 per cent from now until the end of the year.
This month, Billion Development and Project Management was the first developer to offer new projects at steep discounts. It marketed a first batch of 354 units at the soon-to-be completed The Aurora development in Tsuen Wan at HK$17,740 per square foot, about 10 per cent lower than the prevailing rate in the district. After all 354 units were sold on the first day of sales, it has raised prices for the second batch of 216 units – to go on sale this Saturday – to HK$19,052 per square foot.
