Homebuyers shrug aside Hong Kong’s coronavirus fears,
snapping up every Mid-Levels flat offered by Henderson Land for sale
Hong Kong’s homebuyers shrugged
aside a coronavirus outbreak that has kept office workers, shoppers and visitors
to stay indoors, snapping up a limited release of new flats over the weekend.
Henderson Land Development, the
city’s third-largest property developer, sold all 15 flats at its The Richmond project in the swanky neighbourhood
of Mid-Levels on Hong Kong Island. The single block, due for completion in
November 2021, comprises 90 apartments of between 206 and 300 square feet (27.9
square metres), priced between HK$6.3 million (US$811,000) and HK$9.7 million.
The successful sale, following a
January 21 sell-out of 30 flats at the project, raises the revenue tally from The Richmond to HK$360 million, Henderson said.
“Sixty per cent of buyers came from
Hong Kong Island, Kowloon and New Territories, each making up 20 per cent” of
the customers, said Henderson’s general manager Mark Hahn, adding that the
satisfactory” sales response gives the developer the confidence to offer a
third-round sale soon.
The brisk sales, even amid a
coronavirus outbreak that has stopped property exhibitions and an ongoing
political crisis, shows how the Hong Kong government’s easing of mortgage rules
is effectively attracting more first-time buyers into the market. Some analysts
are forecasting property prices to rise 10 per cent this year.
In October, Chief Executive Carrie
Lam Cheng Yuet-ngor announced a measure that allowed government-backed Hong
Kong Mortgage Corporation to relax the ceiling on mortgage financing schemes
for first-home buyers. Purchasers will be able to borrow up to 90 per cent of a
property’s value to a maximum of HK$8 million from HK$4 million previously.
“The
Richmond continues to be popular among buyers, especially investors,”
because the combination of the location with the price point makes the project
attractive, a real estate agent. “Even with the coronavirus [outbreak] … buyers
are still interested in entering the market and looking for high-quality
units.”
In the case of The Richmond, buyers only need to put down 10 per
cent of the sale price, or at least HK$630,000, if they choose staggered
payments and will only need to start servicing their mortgages when they take
possession of their property.
The price range of the project is
relative cheap for a premium address in Hong Kong, with easy access to the
Central business district making the neighbourhood the ideal location for
expatriates and professionals.
Apartments at The Richmond are likely to be leased for between
HK$80 and HK$90 per square foot per month on average, at least 23 per cent higher
than the prevailing market price in Mid-Level West, according to data by
property consultant Knight Frank.
“The project has great rental
potential [for expatriate and professionals], so it is favoured by long-term
investors,” the agent said. “About half of the buyers are investors. New flats
in Hong Kong Island is always popular as new supply is limited.”
(South China Morning Post)
