Hong Kong homebuyers snap up units at The Sterling as value-focused demand deepens
The Sterling residential development drew 46,000-plus subscriptions, highlighting appeal of urban locations with strong transport links as housing recovery matures
Hong Kong homebuyers are still willing to spend, and the sell-out of a major new development on Saturday showed how demand is increasingly concentrated in projects that offer clear value as the housing recovery enters a more mature phase.
China Resources Land’s The Sterling in southwestern Kowloon, in Cheung Sha Wan, sold all 180 units offered in its first price-list batch, generating nearly HK$1.6 billion (US$204 million). The project received more than 46,000 subscriptions, or more than 254 times the number of units available, setting a record for first-round subscriptions at a Hong Kong first-hand residential project.
The response was driven by the project’s urban location and competitive pricing, rather than a broad return to aggressive buying, according to industry insiders. The project is close to Nam Cheong station, making it a relatively rare large-scale new development in the city area.
“The response is part of a broader pattern,” said Roy Ng, head of research at consultancy Newmark. The strong response reflected demand for new, premium stock with good transport connectivity and competitive pricing, he added.