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Hong Kong developers test homebuyer sentiment as residential market outlook improves
Developers are now testing the waters” by pricing new projects at market rates, aligning with average prices in nearby developments or slightly higher, said Joseph Tsang, chairman of JLL Hong Kong. “But it seems like the market is still expecting more discounts, as sentiment has yet to recover, which is reflected in the sales performance.”
Two major residential developments in Hong Kong saw tepid sales over the weekend despite a slow recovery in the city’s property market, showing that buyer sentiment has yet to fully rebound even as developers strive for higher profit margins amid a stabilisation in home prices, according to analysts.
“Developers are now testing the waters” by pricing new projects at market rates, aligning with average prices in nearby developments or slightly higher, said Joseph Tsang, chairman of JLL Hong Kong. “But it seems like the market is still expecting more discounts, as sentiment has yet to recover, which is reflected in the sales performance.”
In the first round of sales on Sunday, Henderson Land Development sold 76 of the 148 units as of 3.30pm at its To Kwa Wan Road redevelopment project, Highwood Phase I. The units were priced at an average of HK$18,179 (US$2,336) per square foot, exceeding the HK$17,968 per square foot for the first 30 units released in 2023 at the nearby Uptown project developed by Yu Tai Hing.