Tepid sales at Hong Kong’s Uni Residence as competition heats up in new home market
The project in Tai Wai sold just 60 per cent of flats on offer on the first day of sale, as rival developers compete for buyers’ interest
Competition is intensifying in Hong Kong’s new residential property market as improved sentiment and declining mortgage rates have prompted developers to offer attractive prices to entice buyers.
Homebuyers snapped up just 58 of the 100 flats on offer on the first day of sales at Uni Residence in Tai Wai, agents said. Five out of 10 flats offered by tender were also sold, generating about HK$38 million (US$4.8 million).
In contrast, Henderson Land’s The Henley in Kai Tak sold 78 of 80 units on offer less than four hours after sales began at noon on Saturday, according to agents. The batch, priced at a discount, consisted of 18 open studios, 50 one-bedroom units and 12 three-bedroom flats. The lowest-priced one, a 238 sq ft unit, sold for HK$4.62 million, or HK$19,415 per square foot.
The developer said one group of buyers bought six units, three groups each acquired three units and seven groups each purchased two units.
“With ample new supplies launching in the market at attractive prices, developers may face competition as homebuyers increasingly consider project quality, supporting facilities and the nearby environment,” said Louis Chan Wing-kit, CEO of Centaline Property Agency.
Uni Residence’s joint developers Wing Tai Properties and China Vanke priced the first 50 units of the new 32-storey, 240-unit building at an average of HK$15,481 per square foot, about 8.5 per cent lower than recent transactions in the nearby secondary market.