Hong Kong’s prices have been boosted, according to hot property news.
According to JLL’s latest Hong Kong Residential Sales Market report, HNA Group and other similar companies have been successful in resetting prices in Kai Tak, home prices are up by 50%, after taking four residential plots for an average land cost of HKD 13,415 per sq. ft.
One Kai Tak increased pricing of Phase II by about 13% to HKD18,100 per sq. ft, from Phase I. K City pushed it higher to HKD18,900 per sq. ft, whilst the first batch of units at Poly Property were priced at approximately HKD20,000 per sq. ft. These new benchmarks show an increase of as much as 50% from market expectations prior to HNA’s bids.
The Regional Director of Capital Markets at JLL, Henry Mok, said: “The record-breaking land sale transactions have encouraged developers to raise the asking prices of their new projects, leading to a general increase in property prices.
“However, whether the upward trend of housing prices can sustain and whether developers can generate a reasonable profit from their recent land purchases, will largely depend on the market conditions at the time of sale.
“Changes in the financing environment, the land sale system and stamp duty rates, could weaken their case.”
The market has certainly gathered its pace over recent months against reasonably steady performance of the stock market – a sustained low-interest rate environment and a strong land sales market.
Property news such as this means that buyers and investors know what to expect in the Asia Pacific region, real estate property markets. House prices are certainly fluctuating so keep an eye on property news like this to stay aware of any upcoming changes.
Written by Gemma Smith