CK Asset announces prices for new Coast Line phase after strong weekend sales

Hong Kong property developer CK Asset Holdings has released the price list for the first 50 units at its Coast Line I project just two days after homebuyers snapped up all 626 apartments in Coast Line II on the first day of sales on Saturday.

The average price of the first batch of 50 flats has been set at HK$15,250 (US$1,950) per square foot, 1.68 per cent higher than the average price of the first batch at Coast Line II, which were priced at HK$14,997 per sq ft, because Coast Line I is nearer to the harbour in Yau Tong and offers better views. Coast Line I will have a total of 228 units.

“This batch of flats has been launched on the basis of the original price list of Coast Line II,” said Justin Chiu Kwok-hung, CK Asset’s executive director. “The price has been increased due to different views, as Coast Line I is closer to the sea.”

CK Asset, Hong Kong billionaire Li Ka-shing’s flagship developer, sold every flat in Coast Line II for an estimated total of HK$4.67 billion on Saturday. The outcome was almost guaranteed after 60 buyers registered their interest for every available flat.

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The company decided to launch Coast Line I after Saturday’s sale, Chiu said. The cheapest unit on offer in the first batch is a 288 sq ft one-bedroom flat for HK$3.85 million, or HK$13,490 per square foot, after a 19 per cent discount.

“It is expected that the first batch of units will be fully sold out, continuing the sales success of the project’s phase two,” said Sammy Po, the CEO of Midland Realty’s residential division in Hong Kong and Macau.

CK Asset’s strategy of cutting prices had sparked fears among consultants that other developers in Hong Kong would be tempted to follow with even bigger discounts in the third quarter. The developer and the city’s powerful guild of developers have, however, allayed concerns that a price war is imminent.

“The sales result from Coast Line II suggests that CK Asset’s price cutting strategy is effective for clearing inventory,” said Louis Chan Wing-kit, CEO of the residential division at Centaline Property Agency. Other developers will follow suit, and the discounts will need to be as high as 10 to 15 per cent compared with neighbouring new developments, Chan said.

For instance, Sino Land uploaded the sales documents for its Villa Garda Phase III project in Lohas Park on a government website for first-hand residential properties on Monday. A first price list is likely to be announced soon.

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Hong Kong’s secondary market has also seen a revival, with transaction volumes rising over the weekend.

“Although the secondary market is still struggling, new launches have boosted the property market’s overall atmosphere,” said Willy Liu Wai-keung, CEO of Ricacorp Properties. “Owners of lived-in homes who are willing to reduce their prices can be taken up, reflecting that purchasing power is still there.”

Eight secondary-market sales were recorded over the weekend, a record high for the past five weeks, according to Ricacorp. Midland Realty also recorded eight transactions, twice as much as the previous weekend and a seven-week high. Centaline saw five deals.

CK Asset to launch The Coast Line residential development in Yau Tong

New developments in the primary market will continue to dominate in the near future, Liu said. “But the owners of lived-in homes are not pessimistic about the future and, therefore, generally have not reduced their prices drastically,” he said, adding that transactions in the second-hand market have been relatively quiet.

The second-hand market will recover after a period of time, with hot sales of new flats boosting the market, Liu said.