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SHKP to release Yuen Long units in biggest residential sale this year

HONG KONG: Sun Hung Kai Properties (SHKP) will release its residential project in Yuen Long for sale tomorrow Feb 20 at an average price of HK$5,200 per square foot, about 18 per cent higher than secondary transaction prices in the nearby area.

The developer unveiled the price list for the first batch of 50 units at Yoho Midtown, the second phase of Yoho Town development, which are being offered at HK$4,522 to HK$9,089 per square foot of gross floor area.

The 1,890-unit Yoho Midtown will be the city's biggest housing project to go on sale so far this year.

"The average price is at the low end of our expectations of HK$5,000 to HK$6,000 per square foot," said Sammy Po Siu-ming, a director of Midland Realty.

The units were offered at about 18 per cent higher than the HK$4,400 per sq ft average transaction prices for units in phase one.

"But many owners have held back their units from sale in the secondary market," said Po.

"They will revise upward their asking prices if SHKP achieves strong sales over the weekend."

He said Midland had received 2,000 expressions of interest in the project from potential homebuyers. Seventy per cent are residents of Yuen Long, while the rest are from Hong Kong Island and Kowloon.

"About 30 per cent of these clients are aiming to buy for investment purposes," he said.

Centaline Property Agency said about 40 per cent of the owners of the project's first phase had raised their asking prices by 10 to 15 per cent in the belief that SHKP would achieve higher prices for the whole project.

Secondary transactions for the first phase of Yoho Town have almost come to a halt. The latest transaction recorded was a 525-sq-ft phase-one unit that sold for HK$2.28 million, or HK$4,343 per square foot, early last month.

SHKP said the first batch of 50 units in Yoho Midtown to be put on sale range in size from 503 to 1,251 square feet.

The cheapest unit, a 573-sq-ft, one-bedroom flat, is being offered at HK$2.62 million.

The most expensive is a 1,218-sq-ft, four-bedroom apartment with a rooftop, and an asking price of HK$11.07 million.

Po said about one-third of the units on sale were located on lower floors at cheaper prices.

"The lower pricing strategy will draw buying interest and allow the developer to release more units at higher prices later," he said.

Amy Teo, a project director with Sun Hung Kai Real Estate Agency's sales department, said the company would release more units if it gets a good response over the weekend.

"We aim to sell 700 units for HK$3 billion on Saturday and Sunday," she said.

Shares in SHKP remained unchanged at HK$102.90 yesterday Feb 18. - South China Morning Post

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