Sun Hung Kai sells out at Mount Regency as new buyers snap up new homes before mortgages rise
Hong Kong’s residential market maintained its pace, as millennial buyers rushed to get their hands on the latest available sales launches over the weekend before higher mortgage rates kick in later in the year.
Sun Hung Kai Properties had sold 36 of the 38 units of its Mount Regency apartments in Tuen Mun by late morning on Saturday, mainly single-bedroom and twin-room units at between HK$5.6 million and up to HK$8.4 million (US$1.07 million), according to Midland Realty, the sales agent. The remaining two units are expected to be sold before the day’s end.
“Half of the available units were bought by millennial buyers,” said Midland’s residential division chief executive Sammy Po Siu-ming, referring to the generation that came of age at the turn of the second millennium.
This marks the continuation of a hot streak for Sun Hung Kai, the city’s largest developer by market value. An earlier batch of the company’s 188 units at Mount Regency sold out two weekends ago, attracting as many as 5,200 prospective buyers, or 26 bidders for every available unit on average.
The same demand was seen at other sales launches around Hong Kong this recent weekend. More than 2,000 people showed up to visit the showroom of K Wah International Holdings’ Solaria flats at Pak Shek Kok in Tai Po, even with a 24 per cent price premium over projects in the neighbourhood.
Residential property prices had risen every month for 24 consecutive months, cementing Hong Kong’s position as the world’s most expensive urban centre for owning a home, despite a raft of market cooling policies by the city government.
That may change in the second half of the year, as increasing property supply comes on line, while higher US interest rates trickle over to Hong Kong, which runs its monetary policy in lockstep with America to maintain the stability of the local currency.
For now, buyers are snapping up every new available unit on the market. About 250 new flats were sold last weekend, of which 94 were at Wing at Sea II in Lohas Park and 78 at Mount Regency.
Last Friday, 39 more units were sold at Wings at Sea II. Oasis Kai Tak at Kai Tak also sold 50 units.
With three rounds of sales, Mount Regency has sold over 300 units.
According to Midland, Wings At Sea II also saw half of its latest flats acquired by millennial buyers.
Smaller flats which cater to the needs millennial buyers have been the latest market trend.