Hong Kong apartment prices last year surged by 14 percent. The 10 percent price surge that has been predicted this year can be attributed to land acquired 2 years ago that was costly and that was the opinion of Thomas Lam Tat-man. Mr. Thomas is a general manager at Henderson Property Agency’s sales department. Henderson Property Agency is a Henderson Land Development unit. Henderson property agency is definitely among the largest developers in the city of Hong Kong.
Mr. Thomas expressed his view during after the event of Lunar New Year held on February 16 2018. He said that the 10 percent prices increase of land throughout this year was contributed by the land which was sold 20 months ago through secondary market sales/government land sales.
Mr. Thomas said that the city’s land and home values have consistently been on the increase since the 4th quarter of 2016. Additionally, according to the records of Centa-City Leading Index, the prices of secondary private home prices has increased by 20 percent ever since the 4th quarter of 2016. The main function of Centa-City Leading Index is to track the prices of Hong Kong’s secondary private home.
The owned homes prices earlier in December increased for the 21st month and that is as stated by the Rating and Valuation Department. The increase over that period represented the owned homes longest stretch of increases ever since 1993. The increase over that period was fueled by demand for flats that are small and of course more reasonably priced.
Thomas confided that the Henderson Property Agency was planning this to launch new homes this year, about 3,000. The new Hong Kong Apartments are planned to be launched in the urban districts in addition to in Aberdeen’s project next month.
Because the Lunar New Year for home purchases is traditionally a low season, it is not always a surprise to see developers offering discounts to improve sales. Lam announced on the same day that Lunar New Year discounts were being offered until March 5th for a number of flats located in 5 projects. The discounts are in the range of HK$10,888 to HK$68,888. One of the other developers that have announced that it was offering discounts was Sino Land. The discounts offered are for purchases of its Sai Kung’s projects and the ranges of the rebates are from HK$38,000 to HK$188,000. Another developer called CK Asset also offered cash rebates to purchasers of its Hong Kong apartment and of course electrical appliance vouchers as far as HK$238,000.
It has been argued that because Hong Kong Apartment prices continue to soar, the rebates offered would in some cases only contribute towards counterbalancing the effect of increases in price. For example, the cash rebate, HK$38,000, offered by Sino Land for its The Mediterranean project, Sai Kung, would only constitute 3% of the price increase that was announced this month. In the Mediterranean project, some flats asking price are in the ranges of HK$8.5 million to HK$14.2 million.
Lam also said that the scouting to be able to purchase land in locations that are of high potential would be continued by Henderson Land. Just last week, the company managed to buy two residential plots in Hong Kong, Kai Tak, for HK$16 billion. The two plots bought,two others still remain, were residential plots of HNA Group that is debt-ridden. It remains to be seen whether Henderson Land would be able to buy the last two remaining residential plots and he provided no further details on the subject. Rather he stressed on the concrete plans for the acquired two plots.
In conclusion, Lam also managed to talk about the issue whether they will be able to provide additional small Hong Kong Apartments as the demands for them had increased due to them being relatively affordable. Lam was of the opinion that any decision to be made would be influenced by a number of factors including the location of the project and project scale.