ADVERTISEMENT

International

Hong Kong Developer’s Kai Tak Project Sold Out for Second Week

The Sun Hung Kai Properties Ltd. logo on a glass door outside the Sun Hung Kai Centre building in Hong Kong, China. Photographer: Jerome Favre/Bloomberg (Jerome Favre/Bloomberg)

(Bloomberg) -- Hong Kong’s biggest property developer sold all of its units put on sale at one of its projects over the weekend, as some buyers took advantage of lower borrowing costs and steep discounts. 

All 238 units for sale at Sun Hung Kai Properties’ Cullinan Sky project were sold over the weekend, according to a representative of the developer. This includes additional units released for sale after the developer noticed a high number of visitors to its show flat.  

The development is located in Hong Kong’s Kai Tak district, and the units were sold for an average of HK$22,808 ($2,935) a square foot. This brings the total number of units sold to 460. Apartment sales in Hong Kong are typically released in batches. 

The market is keenly watching apartment sales in Hong Kong as an indicator of whether the Federal Reserve’s interest rate cut is able to provide some relief to the city’s property slump. So far, while home sales have jumped in recent weeks, many analysts do not expect the surge to be sustained as Hong Kong continues to face poor economic sentiment and geopolitical tensions. 

Developers are continuing to offer units at “conservative” price levels, according to analysts at Jones Lang LaSalle Inc. Prices for the first batch of units at Cullinan Sky were set at a seven-year low for new developments in the district, according to calculations by the broker. 

Meanwhile, in Hong Kong’s Southside, CK Asset Holdings Ltd.’s Blue Coast II development was more than 10 times oversubscribed for the 108 units it released for sale over the weekend. 

©2024 Bloomberg L.P.