Pressure for interest rate hike lowered KOKO MARE in Kowloon rises in popularity with starting price at HK$5.937 million

Banks in Hong Kong have not followed the Federal Reserve in raising interest rates, benefiting the local property market. Two new small and medium-sized residential developments in the urban area were competing for customers yesterday. Wheelock Properties’ KOKO MARE in Lam Tin announced its first price list of 98 units yesterday, including one- to two-bedroom units in Block Eight, at a discounted average price of HK$18,330 per square foot. After a maximum discount of 12 per cent, the discounted average price per square foot was HK$18,330, matching that of KOKO ROSSO’s phase two development, which was launched last month. Meanwhile, Henderson Land’s Baker Circle Euston in Hung Hom added 56 units to its second price list after four months, with an average price per square foot of HK$19,218. This is 9.5 per cent lower than the discounted average price per square foot of HK$21,238 in KOKO ROSSO’s first price list launched in November last year, with a discounted admission of HK$3.9978 million for 214-square-feet studio flats. ◆ Leung Yuet-kam 

The first batch of 98 units of KOKO MARE in Lam Tin, all located in Block Eight, include nine one-bedroom units, 73 two-bedroom open kitchen flats and 16 two-bedroom terrace kitchen units, with saleable areas ranging from 334 to 520 square feet, at a discounted price of HK$5.937 million to HK$9.292 million, at a maximum discount of 12 per cent, with discounted prices of HK$17,000 to HK$22,859 per square foot. Ricky Wong Kwong-yiu, managing director of Wheelock Properties, said that 90 per cent of units in KOKO MARE’s first batch are discounted at below HK$9 million. Compared to KOKO ROSSO’s original prices launched last month, the lowest discounted price of HK$17,000 per square foot is HK$158 lower than the lowest discounted price of HK$17,158 per square foot in the first batch of KOKO ROSSO. The discounted market value of the whole batch is approximately HK$790 million. Furthermore, the project's showroom and ticket collection will be open to the public from this Saturday, with sales arrangements to be finalised next week and sales to be launched in the near future.

KOKO MARE to open for ticket collection on Saturday

Louis Chan Wing-kit, vice chairman and chief executive (Residential) of Centaline’s Asia Pacific Department, said that KOKO MARE’s location offers improved views. As KOKO ROSSO remains attractive, the 2,000-odd prospective buyers in the market are expected to be enough to purchase around 400 units of KOKO MARE. Moreover, Hong Kong has not followed the US interest rate hike this time, which is expected to boost buyer sentiment. Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau, estimated that the future rent of KOKO MARE to be around HK$40 to HK$50 per square foot and the rate of return around three per cent, which will likely attract investors. The proportion of investors is expected to be about 30 per cent, with users to account for 70 per cent. 

On the other hand, Thomas Lam Tat-man, general manager of Henderson Land’s Sales (I) department, said that Baker Circle Euston in Hung Hom launched its second price list yesterday, with units ranging from 214 to 374 square feet in saleable area for both studio and one-bedroom units at a discounted average price of HK$19,218 per square foot and a discounted price of HK$3.9978 million to HK$7.569 million, with a discounted starting price of HK$17,908 per square foot.

Baker Circle Euston to sell at discounted average price per square foot of HK$19,000

A number of payment and mortgage discounts have been added to attract buyers. Among them, buyers can take out a first and second mortgage. A total of up to 90 per cent of the purchase price can be borrowed, as well as a second mortgage loan that does not exceed 10 per cent of the purchase price. A ‘repayment holiday’ is also available during the first 12 months, during which no principal or interest is required to be repaid. If the "Flexible Construction Period Payment Plan" is selected, the buyer pays a temporary deposit of 5 per cent of the purchase price first, then pay 8 per cent of the purchase price in 16 instalments of 0.5 per cent each over the next 30 to 480 days. The remaining 87 per cent of the purchase price would be payable during the move-in period. The project is expected to be complete by the end of December next year, with an off-plan period of around 21 months. 

It was also noted that Phases One to Three of ONE INNOVALE in Fanling North sold a total of 1,374 units, cashing in over HK$6.7 billion, of which Phases Two and Three would be handed over from May to June this year. Kai Tak HENLEY PARK and The Symphonie in Cheung Sha Wan will also be launched in the second quarter, offering about 1,200 units and 262 units respectively. It is believed that with Hong Kong banks not following the US interest rate hike and with the market having accumulated some purchasing power, property prices are expected to further rebound in the second half of the year.