Hong Kong Tycoon Li Ka-Shing's CK Asset has launched an ambitious new development project in Lohas Park. The project, called Sea To Sky, is the city's largest residential project in over two years. Surprisingly, CK Asset has priced the units of its development at the upper end of the market price range, a move that could potentially backfire on the company given the current economic climate.
The average price of a unit on CK Asset's new development is around HK$15,823 or $2,041 per square foot after discounts. The average price was taken from the first batch of 285 units that the company is now offering to the public. A typical two-bedroom unit with an area of 471 square feet has been priced at around HK$6.4 million. The first batch of units, estimated to be worth around HK$3.4 billion, is expected to be ready for occupancy by February 2022.
Prudential Brokerage had noted that CK Asset is rather optimistic about the long-term outlook of the city's housing market. The brokerage is skeptical if people would fork out such large sums for the property given the city's skyrocketing unemployment rate and business closures.
The new development is somewhat of a big U-turn for the property developer as it had previously stuck to building low-cost and fast return developments. Compared to other developments located in Lohas Park, CK Asset's units are priced around 21 percent higher than average market prices. Older projects located in the area average at around HK$13,049 per square foot.
Analysts at Centaline Property Agency stated that if CK Asset is successful in the sale of its new development, other developers may be encouraged to build their own high-end projects.
The Sea To Sky project will have a total of 1,422 units available once it is completed. It is the biggest project in Lohas Park since the Nan Fung Group's LP6 project was built in 2018. To attract customers, CK Asset is offering discounts of up to 22 percent along with flexible payment schemes.
CK Asset executive director, Justin Chiu, stated that their sea view flats are actually priced reasonably. He noted that in the coming years, people will be hard-pressed to find similar properties at the price it is offering customers right now. The company had decided to launch the project after Hong Kong had eased its pandemic control measures.
Chiu noted that the company did take the overall economic environment into consideration before launching the project. In regards to the city's unemployment rate, Chui stated that levels aren't as bad when compared to the rates during the 2003 SARs epidemic.