Hong Kong's property bull run takes a surprise break as Sun Hung Kai's Park Yoho Napoli flats in Yuen Long fail to sell out

By Louise Moon louise.moon@scmp.com / https://www.scmp.com/business/article/3010779/hong-kongs-property-bull-run-takes-surprise-break-sun-hung-kais-park-yoho?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | May 21, 2019 10:23 AM SGT
The bull run in Hong Kong's residential property market took an unexpected break on Saturday when a weekend launch by the city's biggest developer failed to sell out.
Sun Hung Kai Properties (SHK) sold 17 of the 144 flats at the Park Yoho Napoli project on Castle Peak Road in Yuen Long as of 3:30pm, according to sales agents, adding that very few more are likely to find buyers. Prices started from HK$17,307 per square foot before discounts of up to 21 per cent.
In its rush to get Napoli " the apartment sizes range from 251 square feet to 826 sq ft (77 square metres) " on the market to avoid a vacancy tax that was working its way through Hong Kong's legislature, SHK added to the supply that was flooding the market, giving buyers more reason to wait for better options, agents said.
Developers have sped up the sale partly driven by the vacancy tax. Most of the units sold on Saturday were one-bedroom flats that cost less than HK$6 million (US$764,000) each, said Sammy Po, chief executive at Midland Realty's residential department, which qualify them for up to 90 per cent loan financing, and are thus more affordable to first-time buyers.
Napoli's sales flop " the second misfire since April " was a stark contrast to the frenzy two weekends ago, when Hong Kong's biggest Saturday launch in six years almost sold out, with buyers snapping up 1,001 of the 1,148 apartments on offer across three districts.
According to Centaline Property Agency, 9,044 new flats were sold in Hong Kong this year as of May 15, up 19 per cent from the same period in 2017, amounting to HK$99.8 billion.
The sales office at Park Circle in Yuen Long, where Sun Hung Kai Properties offers 113 units of Park Yoho Napoli for sale, at Tam Mi on 18 Castle Peak Road. 19APR19 SCMP / Xiaomei Chen
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