HK’s first property launch of 2018 sets records to officials’ disappointment

The unintended consequence of HK government's efforts was increased buyers' confidence

New York Weekend Edition /
Jan.January 14, 2018 02:00 PM

(Credit: Pixabay; Wikimedia Commons)

Hong Kong’s first property launch of the year went off swimmingly for everyone but city authorities.

The launch of Sun Hung Kai Properties’ St. Barths complex sold all 118 units amid tough competition over each apartment — up to 18 bidders were entered for some properties — with final sales being about 17 percent higher than second market prices, reported the South China Morning Post. The launch sale set a new price record for the area.

The news wasn’t welcomed by city authorities who have been trying to dampen Hong Kong’s housing market with a series of regulations — the most recent of which appears to have done the opposite, as has happened before.

Passed earlier in the week, a new stamp duty bill extended the period of tax exemptions for owners who wanted to sell their homes, which Centaline Property Agency’s vice chairman said added fuel to Sun Hung Kai Properties’ explosive sale.

“Today’s sale, mainly comprising property in the mid-range of the price scale, attracted those who wanted to upgrade their flats,” said the chairman, Louis Chan Wing-kit to the Post. “So the government’s move increased the confidence among buyers, encouraging them to buy first and sell later.”

Prices in the city have been rising for over a year as developers try to keep pace with demand. last year’s transaction value on real estate deals amounting to $95 billion, an increased of about 35 percent in worth and almost 15 percent in the total number of transactions. [SCMP] — Erin Hudson


Related Articles

arrow_forward_ios
From left: Amy Schumer and 190 Riverside Drive; Jimmy Fallon and 34 Gramercy Park East (Getty Images, Beyond My Ken, CC BY-SA 4.0 - via Wikimedia Commons, iStock)
Jimmy Fallon, Amy Schumer selling Manhattan pads
Jimmy Fallon, Amy Schumer selling Manhattan pads
OKO's Vladislav Doronin and the Crown Building ( OKO Group, Aman)
Crown Building notches another peak sale with $55M condo
Crown Building notches another peak sale with $55M condo
R-L: Willow's Kevin Danehy, Era Ventures' Clelia Warburg Peters, Fifth Wall's Brad Greiwe and The Real Deal's Hiten Samtani (Photo by Paul Dilakian)
Real estate tech is coming for your business
Real estate tech is coming for your business
A photo illustration of a crystal ball predicting future home prices (iStock)
Home sales, building to slow: Fannie Mae
Home sales, building to slow: Fannie Mae
New York skyline
Rising interest rates will dampen city’s investment sales market this year
Rising interest rates will dampen city’s investment sales market this year
L-R: Douglas Elliman CEO Scott Durkin, Serhant CEO Ryan Serhant, Brown Harris Stevens CEO Bess Freedman, The Real Deal's Hiten Samtani (Photos by Paul Dilakian)
Top resi execs talk brand building, tech and politics at TRD NYC event
Top resi execs talk brand building, tech and politics at TRD NYC event
Southampton Village mayor Jesse Warren (Getty Images, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Southampton Village allows owners to collect summer’s rent upfront
Southampton Village allows owners to collect summer’s rent upfront
Zillow economist Nicole Bichaud (Zillow, iStock)
Where have home values grown more, suburbs or cities? The answer may surprise you
Where have home values grown more, suburbs or cities? The answer may surprise you
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...