Hong Kong developer Chinachem's Sol City project met with weak demand despite discounted prices

By Daniel Ren and Sandy Li ren.wei@scmp.com / https://www.scmp.com/business/companies/article/3003393/hong-kong-developer-chinachems-sol-city-project-met-weak-demand?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | April 1, 2019 6:37 PM SGT
Home sales at Hong Kong property developer Chinachem Group's Sol City development in Yuen Long got off to a slow start on Tuesday, and only a fifth of the 148 units on offer were sold. The lacklustre sales, which started at 6pm local time, added to evidence that a correction in Hong Kong's property market is far from over.
Twenty-nine apartments were sold, with most buyers seeking one-bedroom units, said Sammy Po Siu-ming, the chief executive of Midland Realty's residential division, the project's sales agent.
"Quite a big number of people showed up, but many of them were interested only in small units," said Po. "The number of sales was not big, but it was not a surprise either."
Chinachem is offering the units at an average price of HK$15,876 (US$2,022) per square foot after a discount. The apartments, which vary in size from 319 sq ft to 754 sq ft, are priced at HK$5.64 million to HK$12.9 million (US$718,571 to US$1.6 million). The one-bedroom apartments, priced at about HK$5 million (US$637,031), sold fast, said Po.
Most buyers who showed up on Tuesday for the sale of apartments at Sol City were seeking one-bedroom units, according to the sales agent. Photo: Edward Wong
Also on Tuesday, a price list was released for 50 units at The Consonance, a project privately owned by Henderson Land Development chairman Lee Shau-kee. The apartments are priced at an average of HK$25,951 (US$3,306) per square foot, after factoring in a discount of as much as 6 per cent.
The property comprises 216 units ranging in size from 175 sq ft to 302 sq ft, and will be completed in August 2020. The cheapest apartment is a 196 sq ft unit on the fifth floor and costs HK$4.98 million (US$634,482, or HK$25,409 (US$3,237) per square foot, after discount.
According to Centaline, lived-in apartments in the area go for HK$20,888 (US$2,661) to HK$27,977 (US$3,564) per square foot.
Hong Kong developers have been reducing prices...