In a notable shift in the Hong Kong property market, homebuyers are flocking to new developments, particularly Sun Hung Kai Properties' Cullinan Sky project in Kai Tak. As of 1 PM on October 5, 2024, the company reported selling 94 out of 300 units in the first phase of the project. This surge in interest is attributed to a recent interest rate cut, which has positively influenced buyer sentiment. Approximately 40% of the buyers are from mainland China, with a significant portion, around 50-60%, being young buyers. Prior to the launch, 29,161 prospective buyers had already placed deposits, indicating a strong demand for the units, which are priced at an average of HK$19,668 (US$2,533) per square foot—20% lower than similar projects. The price range for the units is between HK$4.74 million and HK$12.28 million. [87528639]
Simultaneously, in Quarry Bay, Wang On Properties is also experiencing robust demand for its Finnie project, with 47 out of 60 units sold by 6 PM on August 24, 2024. The pricing strategy for Finnie, which is about one-third lower than market rates in 2021, has attracted buyers looking for competitive options. The units are priced between HK$4.29 million and HK$8.54 million, and their proximity to the Quarry Bay MTR station adds to their appeal. Analysts are optimistic about potential annualized investment returns of around 5% for these units, despite a slight 1.2% drop in secondary market prices month-on-month in June 2024. Wang On Properties acquired the project for HK$412 million in 2023, aiming to capitalize on the current market dynamics. [2bf27b25]
Adding to the positive momentum, Lai Sun Development's The Parkland project in Yuen Long has sold nearly all of its 98 units by 5 PM on October 6, 2024. The units, ranging from 265 sq ft to 488 sq ft, are priced from HK$2.43 million to HK$4.63 million, marking a 10-year low for the area. Most buyers are first-time homeowners, reflecting a broader trend of renewed confidence among buyers. This resurgence is further supported by a recent 50 basis point cut by the Federal Reserve, prompting local banks to lower their rates, which has boosted buyer sentiment. The market is expected to see around 2,000 transactions in October, a seven-month high, indicating a strong recovery in buyer activity. [f517cafa]
The overall sentiment in the property market is improving, with analysts predicting a potential price rebound of 3-5% in Q4 2024, supported by a 23% rise in the Hang Seng Index over two weeks, which has restored over US$3 trillion in market value. This positive trend reflects a broader recovery in the Hong Kong economy, encouraging more buyers to enter the market. [87528639]