Two New Kai Tak Developments Face Off with Similar Pricing: Which Will Win?

Kai Tak's unsold inventory has reached a whopping 30% of all new flats in Hong Kong. Among these, two new developments recently entered the market: Phase 2 of Cullinan Sky by Sun Hung Kai Properties, located next to the Kai Tak MTR station, and Phase 1A of Victoria Voyage jointly built by developers including The Wharf, situated in the former runway area. Both projects are priced similarly, with discounted average prices hovering around HK$25,000 per square foot. 

This begs the question: why are developers of the former runway district confident enough to challenge city-centre projects despite their clear disadvantage in transport accessibility? After all, "location, location, location" remains the golden rule in real estate, favouring projects with better connectivity and convenience. So why are both projects launching now, and why are their prices so close? 

Cullinan Sky Phase 2: Priced Higher by 30% Compared to Phase 1

On November 4, Sun Hung Kai Properties launched the first 118 units of Cullinan Sky Phase 2 at a discounted average price of HK$25,280 per square foot. This marks a 30% increase compared to the first batch of Phase 1 units launched in September 2024, which had an average price of HK$19,668 per square foot. What gives the developer the confidence to raise prices so significantly within just over a year?

1. Market Sentiment is Improving

The overall market climate has warmed up, with Hong Kong’s property price index hitting 292.5 in September–up 1.32% month-on-month and reaching an 18-month high. In the first nine months of 2025, the index rose by 1.14%, reversing a three-year downward trend. Alongside falling interest rates and positive market sentiment, developers have also been offering fewer discounts, an indication that property prices may have bottomed out. For example, in Wan Chai, the recent Spring Garden project narrowed its final discount from 12% to 10%, while Miami Quay II launched in October with prices 5% higher than its predecessor, Miami Quay I, in 2022.

2. Strong Returns on Short-Term Flips in Phase 1

Phase 1 of Cullinan Sky has demonstrated strong performance for short-term investors. According to the Land Registry, 23 short-term resale transactions have been recorded in Phase 1, representing nearly 100% profitability. For instance, Unit A2 on a low floor of Block 3, with a usable area of 443 square feet, was sold for HK$12 million earlier this year. The original owner had purchased it for HK$9.64 million in November 2024, earning a profit of HK$2.36 million (a 24% increase) within a year. Such successful cases have bolstered confidence in pricing Phase 2 higher.

3. Superior location

Located in the heart of Kai Tak, Cullinan Sky benefits from proximity to the MTR station and commercial facilities, giving it a clear edge in terms of location and investment potential. The developer is betting that buyers–especially investors optimistic about Kai Tak’s long-term growth–will still be willing to pay a premium, even with aggressive pricing.

Victoria Voyage Phase 1A: Struggling with Transport Limitations

Meanwhile, Victoria Voyage Phase 1A, developed by Wheelock among others, launched 139 units on November 5 at a discounted average price of HK$25,484 per square foot, similar to Cullinan Sky Phase 2. However, the former runway district’s poor transport connectivity poses a significant challenge. Unlike Cullinan Sky, Miami Quay lacks direct access to an MTR station, making it less attractive to investors who prioritise convenience.

1. Conservative Pricing After Phase 1B’s Poor Performance

Victoria Voyage Phase 1A has adopted a more cautious pricing strategy compared to Phase 1B, launched three months earlier. Phase 1B had an average price of HK$29,628 per square foot, but sales were sluggish, with only 65 units sold out of 503. This underwhelming performance prompted the developer to lower prices for Phase 1A by 16% in an attempt to attract buyers.

2. Intense Competition Within the Former Runway District

Miami Quay Phase 1A also faces stiff competition from nearby developments. For example, Miami Quay II, launched in late October, offered its first batch of units at an 8% lower price (HK$23,634 per square foot) than Phase 1A. Additionally, the upcoming Victoria Blossom project by CK Asset, which boasts over 1,000 units, may adopt an aggressive pricing strategy, potentially triggering a price war within the district.

3. Frontline Victoria Harbour Views as a Unique Selling Point

Despite these challenges, Victoria Voyage Phase 1A does have one major advantage: its location at the front of the former runway district, offering panoramic Victoria Harbour views. For self-use buyers who prioritise scenic living environments, Victoria Harbour sea views may be more appealing than Cullinan Sky’s city views. 

The timing of these launches is no coincidence. As of November 6, Hong Kong’s unsold inventory of new flats has reached 21,000 units, with Kai Tak alone accounting for 6,000 units–nearly 30% of the city’s total. Among these, 4,600 units are located in the former runway district. This excess inventory is pressuring developers to speed up sales, especially as the market shows signs of recovery. By launching new projects now, developers aim to improve cash flow and boost year-end performance.

While Cullinan Sky Phase 2 is likely to attract investors due to its prime location and proven profitability, Victoria Voyage Phase 1A may struggle with its transport disadvantages and fierce competition within the former runway district. However, its stunning harbour views could still appeal to self-use buyers. As more developments enter the Kai Tak market, the growing inventory may force developers to adopt more aggressive pricing strategies in the future to remain competitive.

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