Hong Kong’s Nan Fung Development prices Island Garden units at market rate

Hong Kong developers are adopting firmer pricing strategies after new project launches have generated overwhelming buyer response, with Nan Fung Development offering units in Shau Kei Wan at a similar price as a nearby project released last month.

On Tuesday Nan Fung released prices for the first batch of 148 flats at Island Garden, with unit sizes ranging from 485 to 1,051 sq ft, priced at HK$11.05 million to HK$36.8 million, or HK$20,272 to HK$29,821 per square foot.

“Developers are no longer launching projects to undercut rivals because of overwhelming sales results in the past month. Home prices have rebounded 5 per cent in the past month,” said Sammy Po, chief executive of Midland Realty’s residential department.

Island Garden’s launch price was similar to properties at Lime Gala which is located in the nearby area, he said.

“Island Garden is not being launched at bargain prices, but its special finance scheme will aid upgraders to trade up for bigger size units,” said Po.

Nan Fung, through its financial arm, will provide a first mortgage of up to 85 per cent of the flat’s value for a 20-year term and allow buyers to defer the mortgage repayment to the 4th year after completion of the purchase. Interest rates from the 4th year will be fixed at 2.75 per cent, and raised to prime, now standing at 5 per cent, from the 5th year and onwards.