Sun Hung Kai’s biggest weekend property sale since 2022 pays off, as homebuyers snap up flats at Yoho West amid strong demand

About 90 per cent of flats on offer this weekend at Yoho West, a joint project between SHKP and MTR Corp, are expected to be sold, according to agents
Yoho West enticed more homebuyers because its cheapest flats were priced at about a 20 per cent discount compared to SHKP’s other Tin Shui Wai project

Hong Kong property

Cheryl Arcibal

Published: 5:49pm, 2 Dec 2023

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Sun Hung Kai Properties’ (SHKP) biggest weekend home sale in nearly a year and half sees strong demand for about 350 units on offer at the developer’s latest residential project in Tin Shui Wai.

As of 6:20pm on Saturday, 228 flats at Yoho West – a joint project between Hong Kong’s largest property developer by market capitalisation and the MTR Corp – had been sold, representing 65 per cent of the total units on offer that were made available to buyers on the first day of sales, according to agents.

“We expect 90 per cent of the units available today to be sold,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division for Hong Kong and Macau. “Buyers find the pricing attractive and the project is atop the Tin Wing stop of the MTR. Also, it is developed by Sun Hung Kai, a brand that homebuyers know.”

The units put up for sale were drawn from three price lists that SHKP released, covering a total of 613 flats. The first batch of units was priced at an average cost of HK$10,888 (US$1,394) per square foot after discounts – a six-year low for new homes.

People in a queue check out the price list for flats on offer at Sun Hung Kai Properties’ Yoho West project at the company’s sales office inside the V Walk shopping centre in Sham Shui Po on December 2, 2023. Photo: Xiaomei Chen

A second batch of 163 units was priced at HK$11,633 per sq ft on average after discounts, while the third batch of 170 units was priced at HK$12,437 per sq ft after discounts.

The development has enticed more homebuyers because its cheapest flats were priced at about a 20 per cent discount compared to the initial batch of phase three at SHKP’s Wetland Seasons Bay project, also in Tin Shui Wai, according to Midland Realty’s Po. Flats at Wetland Seasons Bay, which was launched in September 2022, were offered at HK$14,344 per sq ft.

“The project’s apartment layout meets the needs of hard-to-find customers, and the price is affordable, attracting buyers to purchase for self-use and investment,” said Louis Chan, vice-chairman at Centaline Real Estate’s Asia-Pacific operations and president of the firm’s residential department.

The warm reception by homebuyers to Yoho West comes amid a depressed property market, mainly hobbled by elevated interest rates. Since March 2022, the Hong Kong Monetary Authority has raised interest rates by a cumulative 5.25 percentage points, pushing borrowing costs to a 16-year high.

Sun Hung Kai Properties is Hong Kong’s largest property developer by market capitalisation. Photo: Shutterstock

The impact of higher borrowing costs has affected property developers, which have become cautious in bidding for parcels of land sold by tender by the government, and homebuyers, who have been sidelined by higher mortgage rates.

Hong Kong saw a record six failed land tenders so far this year out of the 10 projects launched by the government.

At SHKP’s weekend sale, many homebuyers “surprisingly” sought to purchase three-bedroom units, Centaline’s Chan said.

“The age group of these buyers was relatively mature,” he said, adding that 80 per cent of the buyers were seeking to buy their first homes, while the rest wanted to purchase units for investment.

People in a queue inspect the price list for flats at Yoho West, the latest residential development of Sun Hung Kai Properties, inside the company’s sales office at the V Walk shopping centre in Sham Shui Po on December 2, 2023. Photo: Xiaomei Chen

Meanwhile, overall property transactions in Hong Kong are on track to end below the level seen in 2022, which was a historic low.

A total of 54,265 deals were concluded in the first 11 months of the year, while 59,619 units changed hands last year, according to data from Hong Kong Land Registry. The previous low was in 2013, with 70,503 transactions.

In his second policy address in October, Chief Executive John Lee Ka-chiu announced several property easing measures including halving buyers’ stamp duty to 7.5 per cent for non-permanent residents and local residents buying a second or additional home.

A special stamp duty of 10 per cent was also waived for homeowners who resell their property after two years, from the previous three-year requirement. Eligible overseas talent are also not required to pay stamp duty on property purchases unless they fail to become permanent residents.

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