Chinese property developer Vanke Holding Hong Kong managed to beat negative forecasts for the country's property market as it managed to sell all of the 188 high-end flats at its latest development. All of the units at the company's The Campton project in Hong Kong's Cheung Sha Wan area were immediately sold out on Wednesday, going against major predictions of much weaker demand due to the economic downturn and market disruptions.
Investment bank Goldman Sachs previously downgraded its estimates for Hong Kong's local housing prices and office rents by around 15 percent this week, indicating its lack of confidence in an immediate recovery in the sector following the recent eruption of domestic unrest. However, Vanke Holding's performance seems to be counter to Goldman Sach's assessment as it managed to immediately sell out its latest project.
In a report published on Monday, Goldman estimated that home prices in Hong Kong could fall by as much as 25 percent due to the unrest and the lingering economic impact of the coronavirus pandemic. In a worst-case scenario, Goldman predicted that home prices could plunge by as much as 40 percent by the second half of the year.
According to Centaline Property Agency, more than 8,700 interested buyers had registered for a chance to purchase a flat at its Kowloon district project. With the limited units, roughly 46 individuals were competing for each available flat, which was priced at around HK$16,411 or $2,117 per square foot inclusive of discounts. The property agency revealed that one VIP buyer even spent close to HK$30 million or $3.87 million for four flats.
Industry experts explained that there is a massive pent-up demand for homes and offices in the city, at least in the short-term. Developers are likely aware of this and will take every opportunity to take advantage of the limited window. So far, asking prices for properties in the city have remained stable and reasonable amid the positive sentiments of a recovering market.
The successful sale of Vanke's latest project comes just a week after Sun Hung Kai Properties managed to sell more than 90 percent of its new Wetland Seasons Park Development. Around the same time, Tai Cheung Holdings was able to win a bid on a plot of residential property in Ap Lei Chau, which it bought for HK$1.33 billion. The price paid by the developer was at the upper end of market estimates, which were pegged at between HK$769 million and HK$1.6 billion.
