Developers cash in as market hots up

New home sales continued to shine in the city with one buyer splurging HK$40 million for six flats at Seasons Place in Lohas Park.

The project, developed by Wheelock Properties and MTR Corporation (0066), launched a second round of sales for 282 flats yesterday and around 100 of them were sold within the day.

One home buyer shelled out HK$40.77 million for six units, while another spent HK$26.35 million on four units.

The two-bedroom units were sold out, and three-bedroom ones are nearly sold out, said Ricky Wong Kwong-yiu, executive director of developer Wheelock Properties.

Wong expects Wheelock will hit its annual sales target of HK$10 billion in April.

Seasons Place was over 40 times oversubscribed yesterday after attracting 11,780 checks.

Other developers also put new flats on the market.

In Kowloon, Kerry Properties’s (0683) Mont Verra in Beacon Hill will sell two luxury flats by tender on Sunday. Each of the homes spans 8,239 square feet with five bedrooms in addition three rooms for household staff.

And CK Asset (1113) may release the first price list for Blue Coast in Aberdeen today.

The developer also put 25 more flats at Harbourview Horizon in Hung Hom up for rent.

Tenants can enjoy a two-bedroom unit of 600 sq ft for HK$19,000 a month if they move in by June and fork out at least six month’s rent in advance.

But despite the rebound in transactions, Hong Kong property prices are still at a relatively low level.

Midland Realty sees no sharp rebound in prices despite the removal of all housing curbs one month ago, citing high interest rates, Sino-US tensions and the high inventory of new homes.

Still, prices are expected to rise slightly this year.

Knight Frank said “a rebound in the second half of the year” is possible “once interest rates begin to drop.”

And Billy Hui Him-yeung, executive director of Nan Fung Development’s Hong Kong property division, said local property prices will rise 5 to 10 percent this year if interest rates are cut.