Southside Development Prices New Flats at Discount on Hong Kong Island

Wednesday, 9 October 2024, 11:00

Southside development sees pricing of new flats from CK Asset Holdings at 20% below development costs. The recent pricing reflects market adjustments despite prior expectations of price rebounds. Executive director Justin Chiu Kwok-hung indicates a strategic pricing strategy adapted to current market conditions.
Scmp
Southside Development Prices New Flats at Discount on Hong Kong Island

Strategic Pricing in Southside Development

CK Asset Holdings is pricing the initial 128 units at Blue Coast II in Wong Chuk Hang at an average of HK$21,526 (US$2,770) per square foot, reflecting a 2% decrease compared to prior units. This pricing strategy, as explained by executive director Justin Chiu Kwok-hung, aims to align with the company's historical approach of offering discounts amidst fluctuating market conditions.

Market Sentiment and Future Expectations

  • Current property prices have dropped approximately 7% this year.
  • Chiu anticipates a 3% rebound in the next two months.
  • The full-year outlook suggests slight declines overall as the market stabilizes.

Project Details

Blue Coast II comprises 558 units positioned as phase 3B of a larger Southside development. With additional insights from Will Chu, it becomes evident that developers are cautiously evaluating consumer response as mortgage rates decline.

Comparison with Secondary Market

Current prices for nearby secondary projects range between HK$26,000 to HK$27,000 per square foot, as noted by Midland Realty. The primary market has recorded an impressive number of transactions following recent interest rate cuts, with forecasts suggesting a possible 2,500 first-hand sales for October.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe