Hong Kong developer Henderson Land sells a third of 101 units at Yuen Long project

By Eric Ng eric.mpng@scmp.com / https://www.scmp.com/property/article/3006457/hong-kong-developer-henderson-land-sells-third-101-units-yuen-long-project?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | April 22, 2019 6:52 PM SGT
Just a third of the apartments on offer at Hong Kong developer Henderson Land's Reach Summit project were snapped up on Tuesday, a reflection of buyers' cautious outlook about the city's property market and a rebound that has followed a five-month correction in prices.
The developer put 101 units on sale. Of the 32 apartments sold, most were studios and one-bedroom units as they involved smaller sums. About 70 per cent were bought by users, according to agents, with the rest going to investors.
The apartments, ranging from 255 to 381 sq ft in area, were offered at an average discounted price of HK$16,088 per square foot (US$2,052), an increase of 1.3 per cent over the average price of HK$15,881 offered when the project was launched late last year. The selling prices of the latest batch ranged from HK$4.4 million to HK$6.5 million (US$561,000 to US$830,000) each.
"This sounds like a reasonable sales result. Although the overall sales were not high, most of the studios and one-bed flats have been sold," said Sammy Po, chief executive at Midland Realty's residential department. "I expect the market's positive sentiment to continue this month and the next."
Hong Kong home prices rose 1.6 per cent in the first two months of this year, after dropping 9.2 per cent between August and December last year, according to the city's Rating and Valuation Department.
Prices have been bolstered by recent stock market rallies in Hong Kong and mainland China, as well as a dovish stance on interest rates by central banks.
The favourable sales result at Reach Summit comes close on the heels of the sale of 49 units worth HK$630 million at Nan Fung Group's LP6 project in Tseung Kwan O over the weekend.
Thirteen of the units at LP6 were snapped up by a group of buyers who acted through a company. They will have to pay a steep stamp duty of 30 per cent, which reflects their confidence in their purchases, Po said....