HK’s Biggest Developer Sells 204 Apartments in a Day at Discount

(Bloomberg) -- Sun Hung Kai Properties Ltd., Hong Kong’s biggest property developer, sold more than 200 apartments in one day after it offered the units at a discount to boost sales.

All of the 204 homes available for purchase at the Cullinan Sky project — located in the Kai Tak area of the city’s former airport — were sold on Saturday, according to a representative of the developer. The first batch of flats in the 906-unit development was priced 20% lower than nearby new projects.

While Hong Kong’s recent reduction in mortgage rates has lifted sentiment, property developers still face a challenging outlook marred by an oversupply of homes. That’s forcing builders to cut prices to reduce a backlog of properties that stands at a two-decade high, limiting any significant market rebound, according to Bloomberg Intelligence.

Cullinan Sky was developed on a land plot that Sun Hung Kai bought for HK$25.2 billion ($3.2 billion) in 2018, a record price at the time. With the pricing of this first batch of homes, the developer may be booking a loss as the average sale is 38% below the estimated breakeven unit price of HK$32,000 per square foot, BI said. Sun Hung Kai has an additional 584 homes under construction in a second phase of the project.