Hong Kong homebuyers stay away from Friday sale as developers move to clear unsold units amid seven-year low in deals

Villa Garda III, developed by Sino Land, K Wah International and China Merchants Land, has a total of 644 units and is located in the Lohas Park neighbourhood. Since its first sales launch in late August, it has sold 134 flats for HK$1.08 billion (US$138 million), the developers said.

The latest price list has 65 newly launched units with areas ranging from 442 sq ft to 719 sq ft. Prices, after a 15 per cent discount, ranged from HK$7.38 million to HK$12.9 million, for an average of HK$17,165 per square foot.

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The ‘hits’ and ‘misses’ of John Lee’s 2023 policy address

The ‘hits’ and ‘misses’ of John Lee’s 2023 policy address

“I believe together with the new policy, developers will pick up the sales of new homes in order to capture buying power,” said Buggle Lau Ka-fai, chief strategist at Midland Realty. Developers will speed up launching new projects and clearing leftovers in the fourth quarter, he said.

Transactions will become more active in the fourth quarter, and the property market will stabilise or improve, said Victor Lui Ting, deputy managing director at Sun Hung Kai Properties (SHKP).

“Although the government did not [completely] remove the property curbs, the message is positive,” he said.

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On Tuesday, SHKP’s University Hill development in Tai Po district sold 47 of its 88 new units on sale, according to agents. The market value of the 88 flats is about HK$700 million.

The development, at 63 Yau King Lane in Pak Shek Kok, is close to Chinese University of Hong Kong, Hong Kong Science and Technology Park and the proposed Pak Shek Kok MTR station on the East Rail line.

It has a total of 607 flats ranging from 206 sq ft open-plan units to 851 sq ft three-bedroom units. Prices after a maximum 15 per cent discount range from HK$3.2 million to HK$11.04 million, or HK$13,785 to HK$18,262 per square foot. The discounted average price per square foot is HK$16,458.

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The cheapest flat of the batch is a 217 sq ft studio selling for HK$3.2 million.

The latest price list was released after a lapse of five months since the project’s first launch in May, the developer said.

SHKP also launched 41 units for sale by tender on Friday.