New flats in urban areas cost 20% less than 7 years ago 

In the face of a recent interest rate hike, market sentiment has been comparatively bearish in recent months. Subsequently, Hong Kong developers have significantly reduced home prices to sell flats. CK Asset’s The Coast Line II development in Yau Tong yesterday announced its first price list of 132 units, at HK$14,997 per square foot on average. Meanwhile, the average price per square foot of Baker Circle Greenwich’s first two price lists was HK$18,900. The development will begin collecting cheques and opening showrooms for public viewing tomorrow. Leung Yuet-kam 

Victor Li Tzar-kuoi, chairman of CK Asset, said that The Coast Line’s units were attractively priced and comparable to the price of property in urban areas seven years ago, which will likely boost flat sales. 

Timing for land purchase has stabilised 

According to Li, home prices and land prices tended to rise amid an improving economy and low interest rates. However, since the current economy has yet to recover and interest rates are high, this indicates ests prices may soon bottom out. However, the Group also believed that the timing for land purchase is more favourable than three years ago, and stressed that it would maintain financial discipline.