Despite initially gloomy forecasts of the prospects for its latest project, CK Asset Holdings Limited managed to beat estimates by nearly selling out its Sea To Sky development in the Tseung Kwan O district over the weekend. The development is considered to be the most expensive residential property project in the area.

Property experts initially did not believe that CK Asset Holdings would sell a lot of its units given their high prices. However, the company's massive discounts and flexible payment terms convinced home buyers to ignore the risks despite the economic downturn and the escalating tensions between China and the US.

According to CK Asset Holdings sales agents, 456 out of the 462 units on sale in the first batch were immediately marked as sold after they were launched. Due to the number of bidders over the weekend, there was an average of 28 people bidding for each available unit. Average prices for each unit, which are scheduled to be delivered to buyers in February 2022, were around HK$15,823 or roughly $2,042 per square foot including discounts.

The lowest-priced unit, a two-bedroom flat with an area of 471 square feet, is priced at HK$6.4 million. The most expensive unit, a four-bedroom flat with an area of 1,077 square feet, costs up to HK$17.7 million. The prices for the units at CK Asset Holdings' Sea To Sky project is priced at around 21 percent higher than other units in the area.

Property experts point out that those prices may eventually increase for the second and third batches. CK Asset Holdings had previously stated that its strategy was to first offer initial batches at lower prices, which will then be followed by price increases for each new batch.

CK Asset Holdings, one of the largest property developers in Hong Kong, has officially set the pace in the city's property market. Its previous projects, along with developments launched by its rival China Evergrande, had failed to attract buyers.  However, with the success of its Sea to Sky development, Hong Kong's residential property market may be showing signs of recovery.

Due to the months of civil unrest and the economic impact of the coronavirus pandemic, forecasts for the city's property market had all looked dim. Since May 2019, average residential property prices have fallen by as much as 5.4 percent. Analysts estimate that prices could decline further by up to 20 percent by the end of the year. It is also forecasted that developers could be selling only half of the residential units that are launched this year.