Property developers seem unfazed by the recent measures implemented by the Hong Kong government to cool the property market.
“The government is running out of options to influence the market. The new measures should not pose a problem to the market,” said Cheng Yu-tung, Chairman of New World Development.
William Kwok Tsz-wai, Real Estate Director of Cheung Kong Holdings, also argued that the impact of higher mortgage requirements on demand will be minimal.
He believes that “buyers will now have to set aside more money for down payments. This will especially affect homeowners seeking to upgrade.”
Despite the recent measures, home sales are going so well that the developer is planning to put up more flats at Festival City next week at higher prices.
Mr. Kwok noted that the flats are expected to be priced at HK$9,000 psf, up four percent from its previous psf price.
Of the 300 flats, 250 were sold by the developer at Festival City — a residential project in Tai Wai — and reaped more than HK$2.5 billion.
Meanwhile, several homeowners are cutting prices.
One owner slashed HK$580,000 to sell a 815 sq ft unit at Tanner Garden, North Point for HK$6.8 million (HK$8,344 psf), compared with the HK$9,500 psf average selling price in May.
Another reduced his price by HK$280,000 for a 706 sq ft unit at Park Island, Lantau, earning HK$3.12 million (HK$4,419 psf).
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