Hong Kong developer cuts prices in Shau Kei Wan project as oversupply plagues market

Hip Shing Hong (Holdings) is taking orders for 50 units at Oria in Shau Kei Wan after an attempted sale in June 2023. The mid-sized private developer is cutting the prices on 30 of the units by more than 30 per cent, according to its revised list published on Thursday.

The flats in the 23-storey development are priced at HK$19,544 per square foot on average, near a nine-year low for primary launches in the district, according to Centaline Property. Nam Fung Group priced its Island Garden project at HK$19,409 per square foot on average in September 2016.

06:45

More Hongkongers want to move to mainland China despite city’s improved liveability

More Hongkongers want to move to mainland China despite city’s improved liveability

“Developers do not have the ability to increase prices,” Jeff Yau, Hong Kong property sector analyst at DBS Bank (Hong Kong) said during a media briefing on Thursday. “There will not be much room for price increases in 2025” because some highly geared home builders are under pressure to clear inventories for cash, he added.

Home prices fell 6.6 per cent in the first 11 months of last year, taking the cumulative slide to 27 per cent from the market’s peak in September 2021, according to government data. Prices could stabilise by midyear following marginal rebounds in October and November, analysts said.