Hong Kong residents-only housing project sells out on first day

[HONG KONG] A China Overseas Land & Development Ltd project restricted to Hong Kong residents sold out all 300 apartments on the first day, the company said, while two other developers launched new projects as prices rebounded from earlier this year.

China Overseas' One Kai Tak project, located near the site of the former Hong Kong airport in Kowloon, was bought in a government land tender in 2013 for HK$4.5 billion (S$788 million), under an initiative known as "Hong Kong Property for Hong Kong People", designed to prevent overseas buyers from bidding up prices.

Strong demand also fuelled a sell out at Sun Hung Kai Properties Ltd's Grand Yoho project in the New Territories, where all 228 units found buyers over the weekend, the Ming Pao newspaper reported. A third development with 535 units offered by Chinachem Group at its Papillons project in Tseung Kwan O also went on sale at the weekend.

Transactions rose to the highest level in at least 14 months in August to 5,821 units. Prices are 7.3 per cent below their all-time high of last September, having fallen as much as 13 per cent below their peak in March, according to an index of existing home prices compiled by Centaline Property Agency Ltd.

The One Kai Tak flats were priced between HK$15,080 and HK$18,418 per square foot before discounts, according to the property website, and ranged in size from 386 square feet to 833 square feet (35.9 square metres to 77.4 square metres).

BLOOMBERG