CK Asset sells 44 per cent of flats during weekend sale at Shanghai residential project as location, price controls draw buyers

By Zheng Yangpengyangpeng.zheng@scmp.com / https://www.scmp.com/business/companies/article/3015037/ck-asset-sells-44-cent-flats-during-weekend-sale-shanghai?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | June 21, 2019 11:57 AM SGT
Beijing's curbs on how much ­developers can charge for homes has helped ­ignite sales, especially at the ­upper end of the market, as buyers snapped up nearly 500 flats at a prime project in Shanghai at ­prices 10 per cent lower than a similar development.
The sale, at CK Asset Holdings' Upper West Shanghai project, bodes well for other prime projects with artificially low prices, analysts said.
CK Asset, which has two projects underway in Shanghai, netted 4.3 billion yuan (US$621 million) in the three days to Monday by selling 484 units, or 43.7 per cent of the 1,108 flats on offer at Upper West Shanghai, the company said.
The average selling price of 90,000 yuan per square metre is 10 per cent lower than the 100,000 yuan per square metre in a nearby project that sold early last year.
"The prices could be much higher without the government's price curbs. There is a general rule that a new project cannot sell at an average price higher than similar nearby projects launched earlier," said Lu Wenxi, Centaline's senior research manager in Shanghai.
The pricing restrictions will have a limited impact on CK Asset, as it acquired the site in 2006 for 3,055 yuan per square metre.
Lu said the Monday result is "not bad" considering the number of flats on offer and the big lump sum required to buy each one.
CK Asset Holdings has sold 484 units, or 43.7 per cent of the 1,108 units on offer at Upper West Shanghai in the three days through June 17, 2019. Photo: Handout alt=CK Asset Holdings has sold 484 units, or 43.7 per cent of the 1,108 units on offer at Upper West Shanghai in the three days through June 17, 2019. Photo: Handout
Property developers sold 25 per cent of the flats they offered in Shanghai last month, a measure also known as a sell-through rate, according to property consultancy CRIC. CK Asset's result of 43.7 per cent sell-through rate was comparatively high, analysts said.
Shanghai's property market has been in the doldrums for the past two years, as a large number of new launches in outlying areas has provided potential buyers...