'Micro home' developer says it will relaunch stalled Tuen Mun project next month

By Lam Ka-sing kasing.lam@scmp.com / https://www.scmp.com/business/companies/article/3003564/micro-home-developer-says-it-will-relaunch-stalled-tuen-mun?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | April 1, 2019 6:37 PM SGT
Mainland developer Jiayuan International says it will relaunch its "micro home" residential building in Tuen Mun around the middle of April, offering few details apart from a pledge to give homebuyers a "surprise" in the project, which remains 99 per cent unsold.
Analysts said prices at the 356-flat T Plus, which is slated for completion in September, might be slashed by up to 15 per cent.
Of 27 flats on offer only two were sold during a marketing launch on December 8, as the project competes with a high volume of new supply in Tuen Mun.
The project featured homes in layouts as small as 128 sq ft priced from around HK$2.85 million (US$363,291).
"The time of launch ... will be as soon as possible. As soon as when we make the launch, you will have a surprise," said Alex Kwong, project general manager at Jiayuan.
Kwong said T Plus suffered from an ill-timed release of new flats, adding that a chill descended over the city's housing market such that "no project sold very well".
On Wednesday, Jiayuan reported 2018 profit surged 32.5 per cent to 1.46 billion yuan (US$217.15 million), while revenue jumped 37.5 per cent to 10.46 billion yuan
The company declared a final of 11 HK cents per share, bringing the full year dividend to 21 HK cents per share, a gain of 10.5 per cent on year.
Shares in Jiayuan dropped 4.2 per cent following the results announcement to close at HK$4.09 on Wednesday.
The relaunch comes as the Legislative Council's housing panel plans to discuss a vacancy tax scheme on Monday.
If passed, completed vacant flats will be subject to a tax set at two times annual rates, or 3 to 4 per cent of valuation.
Analysts said Jiayuan would need to consider its project costs and the price of comparable projects in the same area ahead of the relaunch.
"It needs a price cut of a minimum 10 per cent, especially since it is a small developer," said Raymond...