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Hong Kong property: CK Asset prices first Blue Coast flats well below cost and cheaper than other Southside projects
- The average price per sq ft after discounts of the first 138 flats is HK$21,968 (US$2,808), the lowest among all completed projects in the residential neighbourhood
- That is more than 20 per cent below cost, meaning the flagship developer of tycoon Li Ka-shing will make a significant loss on the inaugural batch
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CK Asset Holdings has priced its closely-watched new project in Wong Chuk Hang well below cost and significantly cheaper than neighbouring developments in a sign it may be trying to ensure the first batch of flats sells out in the hopes of drumming up interest in the remaining units.
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The average price per square foot after discounts of the first 138 flats to go on sale at Blue Coast works out at HK$21,968 (US$2,808), the lowest among all completed projects in the Southside residential neighbourhood, according to data compiled by property agencies.
That makes it 26 per cent cheaper than the first batch of Southland – the name of the first phase of Southside – which was launched in April 2021 at HK$29,689 per square foot.
And it is more than 20 per cent below cost, meaning the flagship developer of tycoon Li Ka-shing will make a significant loss on the inaugural batch.
“CK Asset’s pricing is very likely to put selling price pressure on other projects atop Wong Chuk Hang station,” said Will Chu, senior research analyst for Hong Kong and China property at CGS International Securities.
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“We can’t rule out the need for CK Asset to achieve a high sell-through rate for the first batch, otherwise it may be difficult for it to sell the remaining units.”
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