Hong Kong homebuyers snap up Uptown East flats worth US$179 million in Kowloon Bay, as market rebounds after curbs removal

The first batch of flats on sale include studios and two-bedroom units, ranging in size between 278 and 561 square feet (25.8 and 52 square metres). The units were priced from HK$3.73 million to HK$8.89 million after discounts of up to 23 per cent. Another 12 flats measuring from 560 sq ft to 750 sq ft are on offer through tender until Monday.

The removal of curbs last month and the roll-out of policies to attract tourists are expected to boost the local economy, according to Wong Sun Hing group managing director Connie Wong Wai-ching, who indicated that 80 per cent of buyers on Sunday were owner-occupiers and Hong Kong residents.

“The outlook is very positive for Hong Kong’s economic growth and the property market,” Wong said.

Uptown East comprises two 40-floor towers with 807 lats, and a three-storey shopping centre. The units include studios and three-bedroom flats, with saleable areas ranging from 235 sq ft to 3,415 sq ft.

Buyers began queuing up at the developers’ Tsuen Wan sales office hours before the doors opened. As many as 6,899 expressions of interest were received, each in the form of a HK$100,000 cheque deposit, or an average of 20 bidders for every flat available.

More than 2,300 transactions involving 106 residential projects were recorded between March 1 and 16, according to Louis Chan, vice-chairman and CEO (Residential) for Asia-Pacific at Centaline Property Agency.

“The removal of property cooling measures helped the property market recover and the trend will continue,” Chan said. “Many Hong Kong residents have high levels of savings, and they would like to buy more property for self-use or as investments for higher returns than bank deposits.”

Uptown East’s sales on Sunday saw eight big spenders take part, each snapping up more than one unit, the developers said in a statement. They may consider launching more units for sale to meet the market’s strong demand.

“The location [of Uptown East] is good, as I have always wanted to buy a flat in Kowloon,” a first-home buyer surnamed Poon said. “The price is very reasonable, cheaper than other projects.”

Poon, who is buying a flat for his own use, said he was able to afford the purchase price only after the city’s monetary authority relaxed its mortgage policies.

“The property market is unlikely to fall further in Hong Kong because there is strong demand in the market,” he said. “I have seen some mainland [Chinese buyers] at this project. Their purchases will support the property market.”

Property transactions in Hong Kong typically surge after government curbs are relaxed, according to an analysis of the city’s monthly sales data since 2010. Strong sales have been reported elsewhere after the latest policy adjustment.

The measures withdrawn included the Buyer’s Stamp Duty that targeted non-permanent residents and the New Residential Stamp Duty for second-time purchasers. Homeowners will also no longer be required to pay a Special Stamp Duty if they sell within two years.