Capitalizing on a recent home-buying frenzy, Hong Kong property developers are ramping up efforts to launch their respective projects by December this year. This property news follows the simultaneous presentations of three private housing estates, which attracted a total of 30,000 prospective buyers. According to ejinsight, the crowd was 10 times the number of available units for sale.
China Overseas Land & Investment managed to sell out its first batch of 300 units at One Kai Tak while 90 percent of Chinachem’s units at The Papillons were snapped up last Saturday. Meanwhile, SHKP sold all of its 226 flats at Grand Yoho in Yuen Long. This recent sale was already SHKP’s second batch of units. JLL managing director Joseph Tsang told South China Morning Post that the strong sales outcome is largely due to the competitive prices which are keeping Hong Kong house prices in check.
Foreigners looking for an overseas property investment may want to look out for the 21 new projects—with more than 12,000 units in total–expected to launch in the coming months come from prominent Hong Kong developers such as Sun Hung Kai Properties (SHKP) and Cheung Kong Property. SHKP has a 1,050-unit MTR residential development at West Rail’s Nam Cheong Station while Cheung Kong Property’s 970-unit project is at Tsuen Wan West Station.
In an article in South China Morning Post, Hong Kong property agents said that the launches of these 21 projects are still “pending developer applications for pre-sales consent from the government.”
The first half of 2016 may have slowed down property sales, but it’s not keeping developers from stepping up their sales efforts to make up for the loss. However, it’s unlikely that developers will implement significant increases. This is mainly because of the huge supply of properties set to enter the market until December, further creating competition among developers.
With this, investing in Hong Kong real estate could possibly be a win-win situation for property investors as they will get prime real estate and get it a reasonable price. Then again, many are also discouraging buying property as they argue that prices are still overpriced in the city. No matter where you stand, one cannot argue that overseas buying is a sound investment—just as long as its advantages overshadow the disadvantages.
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