Developer slashes prices of T-Plus flats by 38 per cent to get first-home buyers to give Hong Kong's smallest abodes a look-in

By Pearl Liu and Sandy Li / | July 12, 2019 10:22 AM SGT
The developer of a micro flat project in Hong Kong has cut the price of flats that are smaller than a car parking space by 38 per cent, after managing to sell only two units during the initial launch in December.
Prices were unveiled on Thursday for 36 flats at the T-Plus project in Tuen Mun, jointly developed by ­Jiayuan International Group and Stan Group,starting at HK$1.73 million (US$222,200), which makes it the cheapest property in the city since CK Asset Holdings sold 165 sq ft units at Mont Vert in Tai Po for HK$1.65 million in 2014.
The shoebox-size units feature an 88 sq ft living room and open kitchen.
Of these 36 units, 12 flats measure 128 sq ft each, which will be sold for as low as HK$13,577 per sq ft after discount. The new price is 37.6 per cent lower on a per square foot basis than a 131 sq ft studio, which the developer put on the market for HK$2.85 million last November.
Vincent Cheung, managing director of Vincorn Consulting and Appraisal, said it was "impossible to find" such a price for a flat, adding that a "car parking space costs as much" in the city.
He said that it makes sense to buy a flat costing HK$1.73 million, as the monthly mortgage payment of around HK$6,100 would be similar to renting a subdivided flat in Tuen Mun, which can cost between HK$6,000 and HK$7,000 a month.
Market observers said the company had to resort to steep discounts after agents managed to sell only two of the 27 units on offer at the T-Plus on December 8 last year, prompting the developer to later suspend sales.
Joseph Tsang, chairman of JLL in Hong Kong, said that such price cuts will not be extended by developers of similar projects, especially those in prime localities.
The T-Plus residential development in Tuen Mun features 356 units. Photo: Nora Tam alt=The T-Plus residential development in Tuen Mun features 356 units. Photo: Nora Tam