Real estate market in Hong Kong undergoes a surge as Sierra Sea flats by SHKP find quick buyers, boosting investor sentiment.
In the bustling city of Hong Kong, a residential project from Sun Hung Kai Properties (SHKP) in the New Territories saw a massive turnout on Saturday. This mega development, Sierra Sea, found a buyer for all 318 flats, thanks to attractive pricing that sparked interest among investors and agents.
Louis Chan Wing-kit, CEO of Centaline Property Agency, noted a high level of investor interest. In fact, one of his clients snapped up seven units, totaling over HK$34 million (US$4.38 million). The continued interest from seasoned investors like Ken Lui Yu-kin, who purchased two units for approximately HK$10 million each, also contributed to the sales surge.
Lui, a veteran investor, plans to lease one of his units to secure a rental return of approximately 4%, while aiming to sell the other for a 10% profit over his purchase price.
Hong Kong's real estate market has been experiencing a shift. While prices have been dropping for three consecutive months, rents have been steadily rising, hinting at a preference for leasing over purchasing[1]. Factors such as economic instability due to trade tensions and policy adjustments impacting the supply of new residential units might put pressure on sales prices[2][3].
Yet, the growth in the rental market could provide a lifeline for mega residential projects like Sierra Sea. The ongoing demand for leasing, driven by talent admission schemes and lifestyle changes, has been boosting the rental market[5]. In the face of economic uncertainties, the rental market's robust performance could sustain or even boost demand for rental units in these developments.
- The success of Sierra Sea, a residential project developed by Sun Hung Kai Properties in the New Territories, was partially due to Centaline Property Agency's clients showing high interest, with one client purchasing seven units for over HK$34 million.
- Ken Lui, a seasoned investor, purchased two units at Sierra Sea for around HK$10 million each, intending to lease one for a rental return of about 4% and sell the other for a 10% profit.
- The ongoing demand for leasing, driven by talent admission schemes and lifestyle changes, has been boosting the rental market in Hong Kong, which could sustain or even boost demand for rental units in mega residential projects like Sierra Sea.
- Despite a three-month consecutive decrease in property prices in Hong Kong, the rental market has shown resilience, with rents steadily rising, suggesting a preference for leasing over property purchase in the current economic climate.
