(By Liang Yueqin)
Each developer speeds up putting on sale new projects as they gradually know well and adapt to the Residential Properties(First-hand) Sales Ordinance. The supply of new property will be up to 10000 units in future 4 months and there will be strong atmosphere of wait and see worrying the interest rising caused by American delisting in advance. So it is believed the pricing of new projects in many districts will be conservative and some developers even need to increase privilege to gain more trading quantity.
There have been 27 new projects of which the brochure is uploaded and 17 among have been put on sale with price list announced since the implement of the Residential Properties(First-hand) Sales Ordinance on 29th April.
Pricing of small-medium residential property estimated to be stable.
The Executive Director of Asia Standard International Group Limited, Guan Baolin expressed, the property price dropped back by 2%-5% after the implement of the Residential Properties(First-hand) Sales Ordinance. He predicted the luxury property price which mostly is affected by the tax measures will fall about 10% in the following year, while the price of small-medium residential property will be stable because there are still demand and the mortgage interest rate is in low level.
The Managing Director of Residential Property Selling Department of Colliers International, Pan Weiji expressed, the price of first hand projects in next half year will close to second hand property's because the market is adjusting and developers are hurry to sell more, and the overall property price may possible fall by 30%-35% as United States delisting and the small-medium property supply increasing in following 3-5 years. It is believed, developer will cut price under pressure to a level of 20% higher than second hand property price when the supply largely increases.
Property price of new projects in Yuen Long faces pressure of falling.
In fact, there are 4 new projects totally about 2,800 units being put on sale in next 4 months which bring much pressure of property price in Yuen Long falling. These 4 projects are Park Signature in Lung Tin Tsuen in Yuen Long, Park Villa in Yuen Long and Hung Shui Kiu project which are in same series, and Riva developed by Sun Hung Kai.
Cheung Kong also has 4 large projects being put on sale. Among the Rise in Tsuen Wan which will be launched from the end of this month to the beginning of next month, the other 3 which are Fung Yuen in Tai Po, phase 3 of LOHAS Park in Tsueng Kwan and Huan Yu in Tsuen Wan including 4,715 units are waiting for approval letter. The Executive Director, Zhao Guoxiong emphasized to stick to the annual sale target of HKD 30 billion which means they have to gain more than HKD 25 billion in next 4 months because Cheung Kong only took cash in about 2 billion in first half year.
Further more, New World has 5 new projects to be launched in second half year which are Park Signature in Yuen Long, The Austin in Austin Station developed with Wheelock, Park Villa in Tong Yan San Tsuen , phase 2 of Double Cove and Hung Shui Kiu project including 2,000 units. Henderson also plans to launch 5 more new projects in the following time of this year including nearly 1,000 units. Due to above aspects, the price of new projects will not be aggressive.
