Hong Kong's new-home market has kept heating up recently, with several projects launching successive sales waves that have once again made it the focus of market attention.
China Resources Land's "Radiant I" project in Cheung Sha Wan, Kowloon, sold out every unit in its first round of sales. The project has so far accumulated 49,000 registrations of intent, making it the new "ticket king" for a first-round new-home launch in Hong Kong's history. The next batch of homes, with saleable areas between 304 and 672 square feet, is priced from HK$6.422 million to HK$15.926 million; after maximum discounts of 16%, average prices run from HK$17,236 to HK$22,370 per square foot. Bush Shao Ming, senior director of Midland Realty, said about 60% of buyers are purchasing for owner-occupation and 40% for investment.
The market's rising volume and prices have benefited many local developers. Henderson Land's interim results show total revenue of HK$17.203 billion, up 80.1% year on year, with unaudited underlying profit attributable to shareholders of HK$5.071 billion, up 66% from a year earlier. Growth was driven mainly by a sharp rise in profit contributions from Hong Kong property sales, along with gains from the government's resumption of certain land parcels in the New Territories.
The latest figures from the Hong Kong government's Rating and Valuation Department show the private domestic price index at 323.2 for June, up 12.7% year on year - the thirteenth consecutive monthly increase. Industry insiders expect limited room for further price gains in the short term, with the market likely entering a consolidation phase in the coming months. Chan Wing Kit, Asia-Pacific vice chairman and residential division president of Centaline Property, said that if new-home take-up slows, it means current prices are nearing some buyers' affordability limits, and the market will enter a consolidation period waiting for purchasing power to rebuild. With large numbers of talent flowing into Hong Kong, housing demand remains strong; second-half price growth may slow, and the market's future direction will depend on interest-rate movements.
