Hong Kong sees sluggish weekend sales at new developments in Kai Tak and Aberdeen, as buyers snap up only 92 of 303 flats on offer

KT Marina, a project in Kai Tak by developers K Wah, Wheelock and China Overseas, sold about 60 units of 218 flats on offer as of 5pm on Saturday
Emperor International’s SouthSky development in Aberdeen had 32 flats snapped up out of a total of 85 units on sale

Hong Kong property

Mia Castagnone

Published: 5:54pm, 4 Nov 2023

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The first weekend of November saw sluggish sales at two Hong Kong residential projects, with a combined 303 units hitting the market, as homebuyers continued to take a wait-and-see approach for potential incentive policies from the government.

KT Marina, a project in Kai Tak jointly developed by K Wah International, Wheelock Properties and China Overseas, had 218 flats from its first phase on offer. As of 5pm on Saturday, homebuyers had snapped up about 60 units, according to Sammy Po Siu-ming, chief executive of Midland Realty’s residential division for Hong Kong and Macau.

Still, Po said the market’s wait-and-see approach is expected to gradually change after the Hong Kong government’s policy address. He indicated that 50 to 60 per cent of the units offered at KT Marina could sell out on Saturday because of their attractive pricing.

The slow sales on Saturday reflect the moderate effect of the Hong Kong government’s decision to relax a number of property cooling measures, including cutting the cost of stamp duties.

Hong Kong Chief Executive John Lee Ka-chiu’s recent policy address also mentioned that there would be support in Kai Tak in terms of transport infrastructure, according to Po.

The size of the KT Marina flats, which include one-bedroom to three-bedroom units, measures from 269 square feet to 771 sq ft. Six of the units were put up for tender sale, while the remaining 212 units were on offer based on their list price.

Prices ranged from HK$5.75 million to HK$15.46 million, which corresponds to HK$17,987 and HK$26,384 per sq ft. Consisting of two phases, the KT Marina development has a total of 2,138 units.

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Meanwhile, Emperor International Holding’s SouthSky development in Aberdeen had sold 32 of 85 units up for sale as of 5pm.

The 23-storey residential building consists of one- to two-bedroom flats measuring from 286 sq ft to 881 sq ft. The units sold a discount of HK$4.71 million to HK$7.93 million.

The city’s annual property transactions are likely to hit a 33-year low this year, according to Centaline Property Agency. It said property sales in October are already expected to fall by 24.9 per cent to 2,925 transactions, which would be the lowest in terms of volume since February 2016.

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On Friday, the Villa Garda III residential project in the Lohas Park neighbourhood of Tseung Kwan O failed to sell out. Buyers snapped up only five of the 129 units on sale in spite of up to 15 per cent discounts offered.

Meanwhile, the Hong Kong Monetary Authority on Thursday kept its key interest rate unchanged at 5.75 per cent, in lockstep with the “dovish pivot” by the US Federal Reserve. It was the third pause since the Fed began its rate-hike cycle in March 2022.

The city’s major lenders including HSBC and its subsidiary Hang Seng Bank, as well as Bank of China (Hong Kong), all kept their prime rates steady at 5.875 per cent, while Standard Chartered Bank retained its prime rate at 6.125 per cent, according to separate statements from the banks on Thursday.

The latest decision, though expected by traders, still comes as a much-needed relief for the city’s mortgage borrowers.

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