The first new development above MTR Ho Man Tin Station, Phase 1B of The Opposite House, developed by Chinachem, announced its first price list today, involving 50 units at an average price of $24,838 per square foot, with one-bedroom units available for sale at "7 for 7".

According to Helen Fung, Sales Director of Chinachem Group, the first batch of units will be offered at a discounted price and described as "standing at ONE price".

According to the price list, the first batch of 50 units will offer one- to three-bedroom units with saleable areas ranging from 336 to 941 square feet at $9,257,000 to $30,679,000 and $25,706 to $32,603 per square foot, with discounted prices ranging from $7,868,000 to $26,077,000 and $21,850 to $27,712 per square foot after a maximum 15% direct discount. The first batch includes 6 one-bedroom units.

The first batch includes six one-bedroom units at a discounted price of less than $10 million, with the most affordable unit on the 19th floor of Block 3B, Unit E, with a saleable area of 336 square feet, at a discounted price of $7.868 million and $23,418 per square foot. The most affordable unit is Unit D on 2/F, Block 3B, with a saleable area of 477 sq ft and a 2-bedroom partition, at a discounted price of $10,422,500 and $21,850 per sq ft.

Chinachem's General Manager of Sales, Ms Maureen Chan, said there are three payment options for The Opposite House, namely 120-day immediate payment with a maximum 15% discount, 360-day immediate payment with a 13.5% discount and construction phase payment with a 12% discount.

In addition, the developer is offering a maximum of 80% one-off mortgage with a maximum repayment period of 30 years at P (HSBC Prime Rate) minus 2.5% for the first 30 months and P for the full term thereafter.

Information shows that no new properties were launched in Ho Man Tin last year, but there are three in 2021, all of which are single-block properties. The first batch of 30 units will be launched in July 2021 at an average price of $26,139 per square foot. Vanke Hong Kong's VAU Residence at 11 Freeway, Homantin, launched its first batch of 50 units in June the same year at an average price of $24,519 per square foot. The first 50 units of PRINCE CENTRAL at 195 Prince Edward Road West in SHKP were launched in March at an average price of $29,628 per square foot.

In other words, the first batch of units at The Opposite House, which is a "top-of-the-range" property, is priced at a level comparable to some single-block buildings in the same district.

For reference, the price of first-hand luxury properties in the same area, such as ST. GEORGE'S MANSIONS developed by Sino Land, was over $55,000 per square foot this month.

Mr Chan Wing-kit, Vice Chairman of Centaline Property Asia Pacific and President of the Residential Division, described the opening price as an "advertising price", saying that the developer had offered the first units at near cost in order to increase the attractiveness of the first batch of units, hoping to attract market attention and achieve an advertising effect.

The lack of large-scale projects above the railway in urban Kowloon in recent years makes it difficult to compare with first-hand units in the same district, while the lack of small one-bedroom units in the Kowloon Tong secondary market and the age of the buildings also make direct comparison difficult.

However, Chan Wing Kit believes that the sale of The Opposite House at an attractive price will freeze the $10 million secondary market in Hong Kong, and it is expected that the first 50 units will be sold to clear the table.

The collapse of SVB in the US has triggered the market to lower the forecast of interest rate hike in the US next week, which is expected to be 0.25% or even no increase. With competition from new developments of all sizes, developers are expected to keep their prices in check and the public's desire to enter the market is expected to increase.