New World prices Hong Kong luxury home project at record low
The firm priced the first batch of 101 apartments in its co-developed Deep Water Pavilia project at HK$20,932 per square foot
NEW World Development launched a luxury residential project on the south side of Hong Kong Island at a record low price as the embattled developer aims to accelerate property sales amid debt concerns.
The firm priced the first batch of 101 apartments in its co-developed Deep Water Pavilia project at HK$20,932 (S$3,432) per square foot.
The pricing marks the lowest of any new residential project in the city’s posh southern district, according to Centaline Property Agency.
New World, one of Hong Kong’s top four developers and owned by the Cheng family, has pledged to speed up sales of its residential projects in Hong Kong as it struggles to service around HK$210.9 billion in liabilities.
The group faces worsening pressure to repay loans if it cannot strike a deal with banks to refinance HK$87.5 billion of its borrowings by the end of this month.
The developer’s turmoil highlights the broader troubles facing Hong Kong’s property market. The city has been grappling with a sluggish economy and a shift in demographics that have weighed on home prices, which declined by about 29 per cent from their peak in 2021, according to data from Centaline.
The number of households in negative equity, meaning their properties are worth less than the loans they took out for the purchase, is the highest since 2003 as at the end of March.
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