Chinachem Group is pricing some of its new flats at the Echo House residential project in Cheung Sha Wan at an eight-year low to attract buyers, suggesting recent government support measures have not been enough to engineer a housing market recovery.
The private developer will sell 50 of the 198 units there at HK$14,888 (US$1,917) per square foot on average after discounts, according to director of sales Helen Fung. That is the lowest in the district since Henderson Land sold its Park One project at HK$13,000 per sq ft in 2016. according to data compiled by Midland Realty.
“Given that Echo House is priced at an eight-year low within Cheung Sha Wan, we expect a strong market response,” Fung said, adding that the launch date has not been determined. “The strategic location and high-quality development all contribute to our positive sales outlook.”
Chinachem, controlled by the estate of late billionaire Nina Wang, is developing the Echo House project with the Urban Renewal Authority. It will offer one- to three- bedroom flats. Generally, buyers could get between 13 per cent and 20 per cent discount in new project launches, according to Midland.
“The discount is reasonable at about 16.8 per cent on average,” said Sammy Po Siu-ming, CEO of Midland’s residential division. “Developers are rushing to launch new projects, leading to a surge in new home supply.”
Chinachem is not alone, as peers including New World Development and Far East Consortium have also slashed prices to multi-year lows. The race to the bottom suggests Hong Kong’s measures this year, especially the scrapping of market curbs in February, have not been enough to stop the rot in the housing market.