It has been a big year for Hong Kong’s primary real estate market. Henderson Land Development, a leading developer in the city, has introduced several new developments which were met with a warm reception from homebuyers as signaled by selling all of 39 Conduit Road units at its release. Thomas Lam, general manager of the sales(1) department at Henderson, reveals that the group has two new projects in store. Together, they will offer over 400 units, most of which will be small-size flats.
Since promoting Park Reach in Yuen Long late last year, Lam says that all units for the development were sold on the first day of the launch. Featuring a low-density boutique design, Park Reach has only seven residential floors and 63 units, with saleable areas ranging from 187 to 310 square feet; around 70% of them are one-bedroom units and the remaining 30% being studio apartments. Apart from standard units, the development also offers special units with a terrace or balcony. As an extension of The Reach, Park Reach shares the same design philosophy with its sister property.
In terms of unit sizes, Lam believes that there is a continuous demand for small-size flats in the area as many young people are leaving home to start their own family or to live alone, and this development—with the right flat sizes and high quality standards—offers an ideal option for first-time homebuyers. The developer provides a first mortgage loan plan with an 85% mortgage ratio; combined with the second mortgage loan, the total mortgage ratio can be as high as 90%.
Lam also shares Henderson’s 2018 plans which will be led by two residential projects on Hong Kong Island—located in Tin Wan and North Point. The Tin Wan development will offer 142 units while the project in North Point will provide 281 units. The North Point development, located on Marble Road, is developed under old lease conditions and features mainly studio and one-bedroom apartments with areas ranging from 181 to over 417 square feet, as well as a few two-bedroom flats. Its unit types are similar to those of Henderson’s Novum East.
When asked about the possible U.S. interest rate hikes in the near future, Lam believes the impact will be more psychological than economical, adding that a 0.25% interest hike will have a very mild effect on mortgages and as there is a big demand for small-size flats, Lam isn’t worried about the sales of Henderson’s new projects.