Property investment? 212 apartments with over 4,000 bidders?
When the supply remains low versus the potential number of demand, then the price will be strong. In a property market such as Hong Kong, demand outstrips supply (long story why it’s not easy for them to become like Singapore’s HDB today and moving forward) and looking at one recent weekend, this remains the same situation today.
Article in SCMP.com Hong Kong’s buoyant home market continued to strengthen, as buyers bought 88 per cent of the 455 flats on offer at three projects in one of the biggest sales weekends this year, putting the city on track to post a record September in sales.
Sun Hung Kai Properties, Hong Kong’s largest developer by capitalisation sold selling all 212 apartments on offer, with 4,062 bidders vying for every available flat. The prices ranged from studio units, going up to three-bedroom apartments priced between HK$4.5 million and HK$10.04 million (US$1.03 million), or between HK$13,842 (RM7,362) and HK$19,300 (RM10364) per square foot after discounts of 17.5 per cent.
Not all projects sold well though. Upper Riverbank at the former Kai Tak airport site, where Longfor Group and KWG Group was building only managed to find buyers for five of the 55 units on offer.
“Strong buying interest made the flats an easy sale,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential department. “Optimism in the city’s property market helps developers sell nearly all the new flats hitting the market this month.” Please do read the full article here with a lot more details. Article in SCMP.com
When prices have gone up, discounts are offered to attract buyers
It’s not just in Hong Kong yeah. When prices are seen to be just too high, then developers will offer discounts. If the buyers felt that this is good enough versus the current market prices, then the developers will be able to sell the units. It’s a win-win situation. Buyers are able to get a unit with a discount and developers continue to be able to sell them versus having all the units unsold.
Of course when markets are red-hot (maybe even towards speculative), then discounts may not be that necessary. That’s the time when the government needs to step in to stop it from getting out of hands. Perhaps it’s a fortunate thing that the market is definitely more subdued here in Malaysia. Just keep looking for good value and never settle just because of heavy discounts. That’s not the most important thing for property investment. Take care.
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