Hong Kong’s new home prices sink as SHKP launches at 11-year low in Sai Kung

Hong Kong’s biggest property developer Sun Hung Kai Properties (SHKP) is shocking the city’s housing market by launching new flats at its megaproject in New Territories at a 11-year low in the district, suggesting the market will struggle to rebound in the near term.

The developer launched the price list for 158 of the 781 units at its Sierra Sea, Phase 1A (2) at HK$10,398 per square foot on average, according to property agents. The units represent the first batch of its 9,700-unit Sai Sha development in Shap Sze Heung, which is located between Sai Kung and Ma On Shan.

This would be Hong Kong’s single largest property project by a developer since the 15,808 homes at Kingswood Villas in Tin Shui Wai developed by Cheung Kong Property between 1991 and 1999. Cheung Kong was renamed CK Asset Holdings in August 2017.

“The pricing is extremely shocking,” said Sammy Po Siu-ming, CEO of Midland Realty’s residential division. “The average price per square foot is the lowest in about 11 years in Ma On Shan, [possibly] to capture the market focus.”

The first batch comprises three one-bedroom units, 118 two-bedrooms units and 37 three-bedrooms flats, with saleable area ranging from 301 to 574 sq ft. These units were priced between HK$9,499 and HK$11,126 per square foot. All the units were priced under HK$6 million (US$773,400) each, with the cheapest at HK$2.99 million after discounts. Sales will begin next week.