Developer put on sale 279 houses by bidding and urgent to sell out before the new guidelines go into effect.
(By Liang Yueqin)
Developer launching small size houses around 200-300 sq ft by bidding causes social disputes, while they still not decide which layout or sizes to be put on sale by bidding. The Real Estate Developers Association (REDA) issued a new guide of "Three Measures of Self-discipline" to members on May 9. The tiered houses under usable area of 1,076 sq ft cannot be tendered for sale after June 1st , and the latest proposal of 3 bedrooms or more, or an area of more than about 753 sq ft can be tendered for sale, also a meeting will be held within days to discuss the outcome. At least 10 projects including about 279 houses have been launched for tender sale since the new guidelines was announced, of which more than half are tiered houses with usable areas less than 1,076 sq ft that stated by the new guidelines.
The Chairman of the Executive Committee of REDA, Leong Chi Kin says, the Association has unified the definition of luxury homes, defining the houses over 1,076 sq ft are luxury homes, which can also be sold by tender. However, REDA had also received other opinions from members on the layout of houses that can be tendered, so they propose to divide by layout and area, that is houses of three-bedroom or more or in area above about 753 sq ft can be tendered for sale; while houses less than three-bedroom or in area below 753 sq ft are more suitable to be sold by price list. The official results will be announced after the meeting with the members in couple days, and there is no final definition of the tender boundary yet.
Leong Chi Kin: The definition of tender has not been confirmed.
Developer scramble to launch small size houses by bidding, before the tender area and layout are finalized. Among them, Yashitu Far East Real Estate launched 5 houses of tiny project The Astro in Cheung sha wan yesterday, including open style and one-bedroom houses in usable areas of 199-297 sq ft, 3 among are feature homes has terrace or rooftop, and they will be put on sale by daily tender since this Saturday.
In addition, Billion’s The Horizon in Tai Po just launched 222 houses by bidding since this Monday, including 3 villas and 219 tiered homes . Among them, 119 were smaller than the new guidelines of 1,076 sq ft, accounting for about 54%. However, Billion responded that The Horizon has always used bidding as sale method, and emphasized that the Group's sales arrangements have always been legal and transparent, also the Group will support any method that enables the market to develop healthily.
Solaria sells small featured houses by bidding.
Solaria in the same district also launched 15 houses for tender sale on last Saturday. Which are all small and medium-sized houses in usable areas of 249-797 sq ft, plus they are all feature houses connected to the platform or rooftop.
Far East’s MARIN POINT in Sha Tau Kok also launched 3 small size houses for tender, which are tiered houses in usable areas of 331-451 sq ft. The business and marketing director, Chen Fuqiang expressed, the new tender guideline of REDA will be implemented from 1st next month, and they will actively cooperate and comply with it also will sell in this direction.
Poggibonsi launches 57 houses in price list.
However, some developers have taken the lead in responding to the new guidelines from REDA, such as Poggibonsi in Discovery Bay, who had used the tender sale since March, suddenly launched the first price list on last week, including 57 houses in usable area of 350-1,019, and the other 20 large houses from 1,152 to 1,844 sq ft will be put on sale by bidding. The sales and marketing assistant general manager of the developer, Chen xiuzhen expressed, the Group hopes to cooperate with the REDA, so they put on sale the houses less than 1,076 sq ft by price list, and they still launch by price list even the guidelines of REDA specify that the platform houses can use tender sale.
