Financial Services Association, April 9 (Reporter Li Jie) Li Ka-shing's company is once again selling houses at 30% off in Hong Kong, triggering a wave of house grabbing by 10,000 people. The sale also became the biggest seller in Hong Kong this year.

Recently, the Blue Coast (Blue Coast) project of the Hong Kong Island South MTR station in Hong Kong was opened for the first time. On that day, 413 units were sold out, with a sales amount of nearly HK$7.5 billion, setting a record for the highest sales amount of a new property in a single day since Hong Kong implemented the “First-hand Residential Property Sales Ordinance” in April 2013.

According to Hong Kong's Central Plains Real Estate data, as of the opening of the Blue Coast project on April 6, a total of 28,000 groups had been subscribed in 8 days, oversubscribing 65 times. An average of 66 people grabbed a home, with a winning rate of about 1.5%.

Chen Yongjie, vice chairman of the Asia Pacific region of Central Plains Real Estate and president of the Housing Department, told the reporter that Changshi's “Qinhai Station” project shocked Hong Kong with a “deep-water bomb price” last year, and the sales achieved excellent results on the same day, so the “Blue Coast” developed by the developer replicated the strategy of the above project and launched a “reserve price” to focus the entire city's focus on one real estate to steal market attention.

According to reports, the real estate price launched by Changshi this time is more than 6,000 yuan lower than the price of other properties in the same area. This price is known as the “reserve price.” Compared with second-hand housing prices in the surrounding area, it is equivalent to a 30% discount.

According to information, Blue Coast's initial price list was 138, of which the lowest contract price was HK$18,998 per square foot, and the lowest property price listed in the contract was HK$8.78 million. The total discount was up to 15% of the sale price. After the discount, the boarding price was HK$8 million, and the total price of the main package was about HK$15-18 million.

“Blue Coast's initial price list pricing discount was quite significant. The cost was the lowest among many projects on the South Shore of Hong Kong Island. The cost discount was about 26% compared to the first phase of the 2021 project. This discount was higher than the price drop in property prices. In addition to the fact that the project is a property built on the subway, and with the large shopping mall THE SOUTHSIDE, its appreciation and leasing potential are guaranteed, and the return is expected to reach 3-4 percent, thus attracting a large number of buyers and investors for private use.” Chen Yongjie told reporters.

Due to this boom in sales, Changshi Group announced on April 7 that it will add 88 properties to the first round, with a market capitalization exceeding HK$2 billion. This time, the sales price was raised by 3%, which is equivalent to the actual average price of HK$230.3 million per square foot.

“The current sales price has not reached the cost price, and I believe it will continue to be adjusted upward, so this promotion can be seen as continuing to cut the bottom. If the market responds well, we will actively consider further promotion before the second round of sales.” Zhao Guoxiong, executive director of Changshi Group, said.

Guo Ziwei, chief manager of Changshi's sales department, also pointed out that a new sales schedule will be promoted and announced as soon as possible, and there is an opportunity to launch another round of sales this weekend.

It is worth noting that this is not the first time that Li Ka-shing has sold a property at a discount in Hong Kong.

In August 2023, when Changshi Group's “Qinhai Station II” was first launched, the lowest discounted price was HK$2.9 million, which was 30% cheaper than surrounding second-hand housing, setting a new low level of new listings in the Kowloon New Area over the past 7 years.

Chairman Tsang Chun-wah of JLL's Hong Kong office once said that when the market is uncertain, Changshi Group is always the first to cut prices. As a developer, we need to consider opportunity costs. Of course, we hope to recover capital as soon as possible and also obtain profits. If they choose to hold inventory, developers will be harmed in two ways: the cost of holding, and the other is the return on revenue that cash could have generated.

What is worth paying attention to is that after Li Ka-shing sells at 30% off in Hong Kong, will other real estate companies follow up with the “reserve price” sale?

In response, Chen Yongjie said that before the removal of spiciness, Hong Kong's first-hand transaction record reached a record low. In the fourth quarter of 2023, the total number of new first-hand private residences rose to 22,936, which is at the booming level. Under such circumstances, some developers introduced a number of “spicy promotions” and maintained relevant discounts even after the spiciness was removed. It believes that in order to obtain sales volume, developers will exercise restraint in pricing in the short term to stimulate sales and reduce the volume of finished goods.

In fact, on February 28 of this year, after 9 months of continuous fall in property prices, Hong Kong cancelled the “hot trick” that had been in place for 14 years in the expectation of many people. After the withdrawal of spicy food, Hong Kong's primary and secondary markets ushered in dual development.

According to data from Central Plains Real Estate, as of April 7, more than 110 new listings had been recorded in Hong Kong, with a total of about 4,888 transactions, or an average of about 122 transactions per day. Furthermore, the CCL (Centa-City Leading Index), which reflects property price trends, has been rising for three consecutive weeks, confirming that property prices have bottomed out and stabilized.

“In April, a number of new listings were launched in Hong Kong. First-hand transactions may have decreased compared to March, but they can still reach 3,000, and the transaction amount has an opportunity to reach new highs. From quantitative to qualitative change, I believe property prices are expected to increase by 5% in the first half of the year.” Chen Yongjie said.