Hong Kong’s Villa Garda III developers rush to the market with sales launch, hot on the heels of CK Asset’s sold-out project
- Sino Land, K Wah International and China Merchants Land aim to capitalise on a revival in the demand for property and seek to pre-empt launches by rivals
- Move follows the successful sale made by CK Asset Holdings which sold out all 219 standard units at its Coast Line I development in Kowloon
Sino Land, K Wah International and China Merchants Land, the developers behind Villa Garda III housing project in Hong Kong have hastened their sales campaign releasing the first price list at discounts in response to the renewed buying interest sparked by CK Asset’s successful launch.
The project is located in Tseung Kwan O district’s Lohas Park neighbourhood and the developers aim to capitalise on this demand revival, seeking to pre-empt launches by rivals, according to market watchers.
Hong Kong’s inventory of unsold units in completed projects is at its highest since 2007, according to property services company JLL, which said a total of 83,000 housing units are available currently with 18,000 in completed projects and the rest under construction. About 25,000 more units are expected to hit the market in 2023, according to JLL.
“Developers may want to tap prospective buyers who were unsuccessful in purchasing flats in Coast Line II, as Tseung Kwan O and Yau Tong are close to each other,” said Raymond Cheng, managing director, head of HK property at CGS-CIMB Securities. “From a city planning and environmental perspective, Villa Garda III is much better than Coast Line I.”
The Villa Garda III project has released its first price list of 130 units, at an average discounted price of HK$16,938 per square foot. The price is 7.8 per cent lower than the HK$18,378 per square foot price listed by the project’s phase II, launched last year.
The lowest price tag on the list is for a 283 sq ft open studio, for which buyers will have to pay HK$4.97 million, or HK$17,553 per square foot.
The sales campaign for these flats is expected to be launched next weekend, according to Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau.
Home buyers snap up Sino Land’s Lohas Park flats on discount
Justin Chiu Kwok-hung, CK Asset’s executive director, said there was no competition between the properties offered by Villa Garda III and Coast Line I.
“You need to also take into account the quality and location of the development,” Chiu said. “Hong Kong people would always prefer the downtown area over the suburbs.”
The sales of the units are expected to raise HK$1.9 billion.
“Both developments have their own features but CK Asset’s may outweigh a bit due to its pricing,” Cheng said. “They did not raise the price much for Coast Line I and some investors may prefer flats with a harbour view.”
Chiu said they are planning to launch The Southside phase three project in Wong Chuk Hang in the second half of the year, but added they will also consider the market sentiment.
