Property sales launch called off at Aruna project in Ap Lei Chau, as Hong Kong developers cut prices for new homes

The Chuang’s China Investments project had planned to offer 25 units, ranging from HK$25,945 to HK$27,498 per square foot after discounts

Hong Kong developers are racing to sell flats at lower price levels amid weak demand and a burgeoning inventory of new homes

2-MIN READ2-MIN

Illustration of Aruna, a property in Ap Lei Chau developed by Chuang’s China Investments. Photo: Handout

Published: 7:00pm, 24 Jun 2023

The first-round sales of a new residential development in Ap Lei Chau, priced more aggressively than other recent launches, were abruptly called off just hours before it was set to kick off on Saturday, as Hong Kong developers rush to release homes at lower prices ahead of anticipated interest rate hikes.

The Aruna project, developed by Chuang’s China Investments, had planned to offer 25 units ranging from 205 sq ft to 317 sq ft, priced between HK$5.31 million and HK$8.58 million (US$1.09 million) after discounts, or HK$25,945 to HK$27,498 per square foot, according to the original sales information.

Chuang’s China did not respond to a request for comment. Both Centaline Property Agency and Midland Realty, the sales agents for the apartment building, said the developer did not disclose the reason behind the sales cancellation.

The rare move by Chuang’s China comes as Hong Kong developers race to offload flats at price levels not seen in five years amid weak demand and a burgeoning inventory of new homes.

Henderson Land Development this week said it would offer the first batch of 148 flats in the 740-unit Henley Park in Kai Tak at an average of HK$21,088 per square foot after discounts. That is 15 per cent cheaper than leftover stock of new homes in the same district, according to Louis Chan, Asia-Pacific vice-chairman at Centaline Property Agency.

Some developers are even luring buyers with mortgage discounts, dining and travel vouchers and other sweeteners.

Star Properties in March gave out railway tickets valued at up to HK$11,000 each to the first six buyers of its After The Rain project in Yuen Long, while Grand Ming Group is handing out vouchers worth HK$8,800 to each of the first six buyers of its upcoming To Kwa Wan development called The Grands.