Hong Kong’s CK Asset prices Blue Coast II in Wong Chuk Hang at 20% below development cost

CK Asset Holdings’ prices for a new batch of flats on the south side of Hong Kong Island are nearly at the same level as the previous phase, even as it expects property prices to rebound soon.

Li Ka-shing’s flagship developer priced the first 128 units at Blue Coast II in Wong Chuk Hang at an average price of HK$21,526 (US$2,770) per square foot, 2 per cent lower than the first batch of 138 units in the project’s first phase in March. The developer has yet to announce a launch date.

“The first price list is in line with the group’s previous style, to offer a certain discount,” executive director Justin Chiu Kwok-hung said on Wednesday.

CK Asset previously said the project’s development cost was about HK$28,000 per square foot, but the selling price was more than 20 per cent lower.

Chiu said the price will be increased as more units are launched, adding that there is no major reason for developers to continue offering discounts amid improving market sentiment following the start of an interest-rate cut cycle.

“Property prices have dropped by about 7 per cent so far this year, and are expected to rebound by about 3 per cent in the next two months,” Chiu said. Overall prices for the full year are still expected to be slightly down, he added, noting that the property market will stabilise.