With the launch of the Huiming project, a wave of discount promotions has swept through the property market, with many remaining inventory units offering value-added incentives or direct price cuts. Among them, the significant price adjustment of Lugoo at Kowloon City by Country Garden has also achieved commendable sales results. However, despite active price reductions in remaining inventory units, overall transaction volumes have seen a significant decline.
The Huiming project quickly announced its prices for the year, with the average discounted price of the first 50 units being only 15,326 yuan per square foot. Due to the long-term lack of new supply in the Wong Tai Sin district and the fact that Huiming's pricing is more than 10% lower than other new developments in East Kowloon, it quickly became the hot focus of the property market, attracting interest and attention from buyers both locally and beyond the district. With the developer releasing more units for sale, the first round of sales quickly sold approximately 100 units, propelling Hongan Real Estate to the throne of this month's top-selling properties.
In addition to the Huiming project, FCI International's Yuen Long Hongshui Bridge Huidou I announced a new price list on the 9th of this month, with the average discounted price for the 63 new units reduced to 11,797 yuan, a 15% decrease from the 13,857 yuan per square foot during the same period last year. New World Development's Yuen Long Jintian PARK YOHO Napoli also unexpectedly released a new price list in mid-month, with the average discounted price for 74 units at 13,755 yuan per square foot, a 23% decrease from the last price list three years ago, which was at 17,909 yuan per square foot.
Furthermore, Country Garden joined the price reduction trend on the 18th of this month, with the average discounted price in the new price list significantly reduced to 17,681 yuan, a 28% to 31% decrease from the first two price lists in May 2022. This price reduction strategy has achieved significant results, with approximately 40 units sold over the weekend, ranking second in sales performance this month.
However, despite multiple properties offering discounts, the overall market transaction volume has seen a significant decline. As of the 29th of this month, approximately 409 units have been sold in the new property market, a monthly decrease of about 70% compared to over 1,300 units sold in December last year. In terms of financial data, the total sales value of new properties this month exceeded 5.7 billion yuan, a decrease of about 40% from the 9.6 billion yuan in the previous month.
This downward trend may reflect buyers' increased caution when facing multiple choices, or limitations in market response to price reduction strategies. Nevertheless, the low-price strategies of the Huiming project and other developments continue to attract a certain level of demand, injecting some vitality into the property market.