New World Development reported a fourth sell-out weekend at its latest real estate project in Hong Kong, selling all 343 flats at The Pavilia Farm in Tai Wai in nine hours, as homebuyers who missed out on earlier launches packed the developer’s sales room.
Every flat was sold as of 6:30pm, according to Sammy Po, chief executive of Midland Realty’s residential division. The developer chalked up HK$3.9 billion of sales receipt today, bringing its total haul to more than HK$15 billion (US$1.93 billion) from the sale of 1,440 flats in four weeks, New World said in a statement.
The enthusiasm to buy follows a reiteration by the US Federal Reserve to keep the current loose monetary policy unchanged, maintaining the global flow of low interest rates to sustain a global economy battered by the coronavirus pandemic. Hong Kong’s monetary policy is conducted in lockstep with US policies, so low US rates would keep the cost of money low in the city, translating to cheaper mortgages for homebuyers.
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“A lot of potential buyers who were turned away during the previous sales have returned,” Po said. “They have now come to buy as the pricing of the project is reasonable, and its location atop the Tai Wai subway station is a big draw card.”
The flats, with sizes ranging from 330 to 866 square feet (80 square metres), come with a price tag of between HK$6.99 million (US$901,000) and US$17.65 million after discounts of as much as 20 per cent.
The project has been a hit among Hongkongers, with more than 10 buyers registering to bid for every available flat during previous launches. The project has sold out on three previous weekends. The latest batch of flats offered to the public were part of the project’s Phase II.
“The success of the new launches is showing renewed positivity that will continue into next year and pick up more in the second quarter,” said Victoria Allan, founder and managing director of Habitat Property. “With the US presidential election sorted and [cases of] Covid-19 stable in Hong Kong and going into a long term low interest rate environment, investors are looking to assets that will show some sort of return.”
The announcement of a potentially safe and effective vaccine is lending some hope to the battered global economy devastated by lockdowns and border restrictions.
The Pavilia Farm’s Tai Wai location also made it more attractive to buyers as it is known as a district traditionally known for luxury homes and villas, Po said.
“The project will also come with a big shopping centre which will be built later and that will make life more convenient for homeowners there,” he said.
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