Chinese property developer Vanke Holdings has struck a second home run with its latest batch of property offerings, repeating the success of the first batch of units for sale at its The Campton residential project in Cheung Sha Wan. The company managed to sell all but one of the flats of the second batch of units on Tuesday, marking the continued uptick in China's home sales for the quarter.
Over 7000 potential buyers had registered for the company's second batch of flats. As of yesterday, 93 out of the 94 flats had been marked as sold, with the last unit still in the process of being allocated to a winning bidder.
The number of participants that joined the bidding for the latest batch meant that at least 74 buyers were vying for each unit. Last week, Vanke managed to sell all of the 188 units it had made available to buyers, with around 47 units sold to first-time home buyers.
Property experts point out that much of Vanke's recent success can be attributed to the competitive pricing of its units and the massive promotions it is running to encourage home buyers. Apart from the affordability, Vanke's projects also offer a wide range of other advantages such as location and the availability of different types of unit layouts.
Centaline Property Agency analysts mentioned that a lot of Vanke's flats were being sold at under HK$10 million, a price point that is reachable for most mid-to-high income buyers. The company was also offering a high loan-to-value ratio of 80 percent to eligible buyers.
The first batch of units that were sold by the company had an average price of about HK$16,411 or $2,117 per square feet. This was 26.4 percent lower than the price of a comparable unit offered by Evergrande at its The Vertex project last year, which only sold just 17 out of the 128 units available at its first phase.
While the prices of the units sold by Vanke during the first batch of units were relatively cheap, the company did slightly increase its prices for the second batch of flats. Prices for the units old earlier in the week had ranged from HK$6.6 million to HK$13.38 million.
The company's successful sales campaigns highlight the rising residential transaction volumes over the previous month, which had increased by 45.9 percent month-on-month. As the country slowly comes out of lockdown, the pent up demand has resulted in a spike of new property purchases across the nation.