CK Asset’s Blue Coast flats are 65 times oversold as buyers snap up discounts in Hong Kong’s biggest home launch this year

Around 200 units, or about 47 per cent of the 422 units put up for sale on Saturday, found buyers as of 3.30pm, according to the developer. The launch will end at around 9pm and is likely to be sold out by then, according to sales agents.

Some 5,000 buyers and agents flocked into the developers’ sales office in Metropolis Drive in Hung Hom to await the results of a lottery to determine their eligible flats, the developer said. About 28,000 expressions of interest were received, or 65 bids for each available flat, locking up an estimated HK$2.8 billion (US$358 million) in deposits to qualify for the lottery.

The first batch of Blue Coast is priced at HK$22,955 per square foot on average, about 10 per cent lower than the development cost of HK$24,955, and cheaper than comparable flats in the neighbourhood, according to an estimate by CGS International.

The units for sales are priced at “bottom fishing prices,” said CK Asset’s executive director Justin Chiu Kwok-hung, CK Asset’s executive director, adding that the developer would raise prices of the units in later batches.

“Hong Kong’s property market, just like Hong Kong’s economy, is gradually recovering,” Chiu said, adding that there is a “70 per cent chance” that housing prices will rise this year, and the entire Blue Coast project is likely to record a “slight profit.”

The units being put up for sale today include 80 two-bedroom flats and 342 three-bedroom flats, ranging from 452 sq ft to 1,006 sq ft (93.5 square metres). Their prices range from HK$8.78 million to HK$26.5 million, or between HK$18,998 and HK$27,257 per square foot after discounts. The whole batch is valued at HK$8.8 billion.

“We’re quite positive about the outlook now. There’s not much room for housing price to fall from this level,” said Raymond Cheng, managing director and head of China and Hong Kong property at CGS International. The property price is likely to rise three to five per cent this year, he said.

Among today’s buyers, 60 per cent were buying for their own use, while 40 per cent were investors, according to an estimate by Sammy Po Siu-ming, CEO of Midland’s residential division for Hong Kong and Macau. The project’s locating on Hong Kong Island above an MTR subway station also makes it attractive to buyers from mainland China, who account for around 40 per cent, he added.

A mainland couple surnamed Wu, who have been living in Hong Kong for seven years, were among the buyers. The removal of the house buying curbs just a little over one month ago was the impetus for them to consider purchasing their first home.

“It saves us about 30 per cent on stamp duty tax, and the price for this phase is significantly cheaper than previous ones,” said the couple, who work in the education sector and as a dentist. Rising rental costs in the city were also a factor, they added.

Blue Coast is one of six phases in the Southside development in the Southern district of Hong Kong Island. Part of phase three, Blue Coast is being developed in collaboration with MTR Corp, the operator of the city’s subway network. It is set to be one of the biggest residential launches of 2024 with 1,200 units.