CK Asset discounts its first property launch of 2019 by up to 10 per cent, bowing to a stalling market as Hong Kong's rallies bite

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Holly Chik and Sandy Li holly.chik@scmp.com
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sandy.li@scmp.com
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October 10, 2019 9:48 AM SGT
CK Asset Holdings, Hong Kong's second-largest developer, will discount its first new property project of the year by as much as 10 per cent as it bows to a stalling real estate market that had been rattled by four months of unprecedented street protests.
The first 180 flats of Seaside Sonata in Cheung Sha Wan, a suburb in New Kowloon served by several subway stations, will be priced at an average of HK$18,688 per square foot, with sizes from 488 square feet to 785 sq ft. The project, comprising 876 apartments in four towers, is scheduled for completion in June 2021.
"Buyers will find this price acceptable," said CK Asset's executive director Justin Chiu, pointing to the project's starting price at HK$14,054 per sq ft as "the cheapest" in the city. "We always consider the market's sentiment when we set the price."
The pricing by CK Asset, the flagship company of Hong Kong's wealthiest man Li Ka-shing, is 10.4 per cent cheaper than Henderson Land Development's The Addition, which launched in March in the same neighbourhood at an average price of HK$20,850. Henderson launched its project " due for completion in April 2021 " in March, before the spate of street protests crimped retail sales and drove visitors away from the city began in June.
CK Asset Holdings' Executive Director Justin Chui announcing the pricing of Seaside Sonata at Fortune Metropolis in Hung Hom on 9 October 2019. Photo: SCMP/K. Y. Cheng alt=CK Asset Holdings' Executive Director Justin Chui announcing the pricing of Seaside Sonata at Fortune Metropolis in Hung Hom on 9 October 2019. Photo: SCMP/K. Y. Cheng
The property launch comes at a tipping point for Hong Kong's decade-long property bull run, as the year-long US-China trade war has chipped away at sentiments, while street protests that had frequently spilled over into violent mayhem had sapped appetite for investments. Hong Kong's economy is on track for a technical recession in the fiscal third quarter that began on October 1.
"Prices could be lower at this current economic condition," said Vincent Cheung, managing director of Vincorn Consulting and Appraisal. "Bear...