Wheelock’s Lohas Park saw the beginning of the biggest housing sale in Hong Kong with 750 units being sold over the weekend. In fact, the agent has revealed that of the total 750, one hundred alone were sold in the first hour and a half. By the end of the day, they had sold 500 units with the remaining 250 gone by the end of Sunday.
The market does not look like it will slow down as buyers rush to get hold of the newly built Wheelock Lohas Park project, even with mortgage interest rates rising and interest rates going through the roof.
Property agents revealed the price rose by 5% or more than HK$ 15,000 on Sunday compared to Saturday. The units saw a subscription interest of 27-28 times of the initial 320 units marketed on March the 1st.
This sale showed how enthusiastic the market was about new project launches, he also added that the sale was such a success given the Malibu was located near Lohas Park and was attracting great interest given the low prices offered by the developer. The prices quoted were significantly lower than that of launches in the nearby district.
Rick Wong -Yiu, the developers managing director, quoted the 100 units in 90 minutes figure adding that 6 different groups bought 3 units each. With every single one paying HK$ 40 million an equivalent of US$ 5.1 million for 3 properties.
The sale underlined the demand for housing in Hong Kong with at least 20 buyers registering for every unit in the block. The sales office meanwhile saw a queue snake its way all around the block waiting to register for a unit of the new project.
A middle-aged man called Mr Wong who was present to buy a unit said he believed the prices were fair and he was expecting a 3% profit. He believed that the housing market would only keep rising and this was a great opportunity to get ahead.
Louis Chang Wing- Kit, Asia-Pacific Vice Chairman and executive at Centaline property agency, said the Malibu Launch would be the biggest launch of the year and would spearhead the Hong Kong housing market in 2018. He also added that due to the government’s lack of dented sentiments in the budget, buyers would have more confidence in the housing market.
In a study by Consultancy Demographia, Hong Kong remained the world’s most expensive, holding the position for the last eight years. The average resident having to save up for close to 20 years to buy a flat. And yet, new property launches were still selling like crazy.
Raymond Cheng, a CIMBSecurities analyst, said that there was great opportunity for developers and that buyers could only afford HK$ 20,000 to HK$ 30,000 a month after making a down payment. He also said that some developers offered second mortgages for buyers who already owned properties.
Wheelock’s Malibu project consists of 1,600 units with Lohas Park expected to accommodate 58,000 residents by the year 2025.
Prices of the current units are HK$ 5.36 million for a 367 sq foot one bedroom unit or HK$ 14,500 per square foot, after discounts. This will be the second most expensive of the 8 launches in Lohas Park area.