Signs of recovery in Hong Kong property market as Kai Tak flats draw US$218 million in orders
- A Kai Tak residential project saw 68 flats sold within hours of their launch in what agents say is a turning point for Hong Kong’s property market
A new residential project in Hong Kong’s Kai Tak neighbourhood attracted strong demand, as property agents said 68 flats of the 108 flats that went on sale on Sunday, had been sold within hours of the launch.
Hong Kong homebuyers were drawn by the project’s discounted prices and the neighbourhood’s growth prospects, as New World Development and partner Far East Consortium announced sales in the third phase of the Pavilia Forest flat complex, called Azure Forest, according to property agents.
Together with sales of the first phase of Pavilia Forest earlier this month, the Pavilia projects over the past nine days sold 254 flats out 294 flats on offer in the project, representing about 83 per cent. The two developers collected HK$1.7 billion (US$218 million) from the sale.
“The response today showed that buyers have returned to the market as long as the price is attractive and the location of the projects is convenient,” said Sammy Po, the chief executive of Midland’s residential division. “Total sales of new property this month is expected to increase multiple times that of last month.
“With interest rate cuts expected to be launched later this year, the low cost of funding will continue to attract buyers. The worst of the property market in Hong Kong is over, and the overall property market sentiment should continue to improve.”
The project’s popularity emerged after the two developers set the prices of their joint project in the Kai Tak district to match the lowest level in nearly eight years, as discounts were necessary to attract buyers in a housing market slump.
