Double Cove is estimated to sell 90 flats under the new batch of release
Article from (Reporter: Fong ChuoYan, Leung YuetKam) Under the effect of QE3, the two new housing estates are attracting home buyers with around HKD 8,000 per square feet. 100 flats in Double Cove and 91 flats plus 1 special flat in Century Gateway were released last evening till late. Source indicates that Double Cove has sold out 70 flats till 9:30 pm last night and was estimated to sell out 90 flats for the night. On the other hand, Century Gateway sold out 52 flats in the first hour of release and was estimated to sell out all for the night.
Developed by Sun Hung Kei Properties Ltd., Century Gateway firstly released 3-room flats yesterday including 58 flats in tower 3 with a starting price of HKD 6.91 million and the average price of HKD 8,148 per square feet, and 33 flats in tower 1 and 2 with 923 square feet, a price of HKD 7.0088 to 8.126 million and the average price of HKD 8,148 per square feet. Apart from that, there is a special flat on the top floor 43/F in tower 3 with an area of 1,620 square feet and 837 square feet roof. The price of this flat is set at HKD 26.73 million and the average price of HKD 16,500 per square feet. Source indicates that since the price for this batch is attractive, home users and investors are competing for these flats.
Developed by Henderson and New World Development, Double Cove has accumulated the sale of 300 flats for 5 days to cash in HKD 1.9 billion. 100 2-room flats were offered to be available for sale in original price last night and the general manager of Henderson Sales department Lam DaMan is satisfied with the sales record. Combing the 100 flats, 400 flats are estimated to be sold which shares 43% of the supply. The cash-in will be up to HKD 2.5 billion.。
Lam DaMan points out that the average price of the 100 flats released last night is around HKD 8,700 per square feet and mainly involves 2-room and 2.5-room flats. It is estimated to cash-in HKD 0.5 billion. There will be a reconsideration of prices after the release of 400 flats and may add 5% more on the prices for the next batch. Since there are more home users and only 5% of the buyers come from mainland China, the demand for 2-room flats is strong.
"The Reach” from Yuen Long could take a reference
Lam DaMan points out that Double Cove is following the market price and remain constant supplu, so it will follows its own plan and arrangement. For other new housing estates, The Reach from Yuen Long could take a reference from Double Cove. And for the new flats of HighPoint in No.188 TaiPo Road, there will be a total of 138 flats and could have a cash-in of HKD 1 billion.
Lam DaMan also points out that QE3 has a positive effect in property market and so inject infinite investments into the market. In addition to the low interest rate environment till 2015, buyers could easily count the cost of buying a home. Since the thoughts of buying a home remains, there is positive effect on the property market.
Lam DaMan: Less effect from mortgage tightening
About the mortgage tightening from HKMA last week on stabilizing the property market, it has decreased the mortgage percentage by 10%. Lam DaMan believes that it will only have bigger effect on mansions worth more than HKD 10 million and limited effect for small and medium-sized flats. Even there is a decrease on the monetary percentage of mortgage of mainland Chinese, the effect is small since not many mainland Chinese are going for a mortgage when they buy flats in Hong Kong. And to the measure of tightening mortgages on the 2nd flat, it will not affect buyers with adequate capital.
On the other hand, a housing estate in TaiPo has raised the price by 1 to 3%, and this will affect more than 100 flats.
