Recently, the Hong Kong property market has undergone new changes, with major developers reducing prices on their new developments, further impacting investor confidence in the market. The latest attention-grabbing move is the substantial price reduction at Country Garden's Long Bi project, where the newly introduced price list shows unprecedented discount levels, directly affecting the overall pricing in the property market.
The Long Bi project is located at 138 Kai Ping Path, offering a total of 190 units ranging from one to three bedrooms to meet the diverse needs of buyers. The price reduction for this project is quite significant, with an average price per square foot reduced by around 28%, dropping from HKD 24,520 in May of the previous year to HKD 17,681. Compared to the second price list introduced in the same month, this represents a further decline of 31%, with a price of only HKD 25,453.
The newly released third-price list covers unit types from open-plan to two bedrooms, with sizes ranging from 213 to 414 square feet and prices set between HKD 4.808 million and HKD 9.9 million. The price per square foot ranges from HKD 20,592 to HKD 23,913, with the highest discount reaching 21%, resulting in an effective per square foot price of around HKD 16,268 to HKD 18,891.
According to Lin Xiaoqing, General Manager of the Marketing Management Department at Country Garden Real Estate (Hong Kong), the goal of this price reduction is to attract buyers to make property purchases before the Chinese New Year. Therefore, a price list named "Happy New Year Price" has been specifically introduced. The selling prices on the new price list are lower than those in the second-hand market in the same area, and it is expected to have a significant impact on the property market. In addition, Long Bi has also introduced the "Outstanding Talent Discount" for the "High-End Talent Admission Scheme" to further attract foreign talents to make purchases.
In addition to the Long Bi project, projects such as Hui Du by Fantasia Holdings International in Yuen Long Hung Fuk Bridge and the new price list for PARK YOHO Napoli by New World have also seen price reductions. Analysts in the industry believe that due to the uncertain outlook of the property market, coupled with strong market observation sentiments and possible interest rate adjustments by the Federal Reserve, the trend of discounted sales has become more apparent.
For the overall property market, Long Bi's price reduction strategy may lead to increased sales, but it also sets a lower reference price. This is good news for investors as they have the opportunity to purchase desired properties at lower prices. However, it also puts pressure on other developers and the overall property market, potentially leading to other projects following suit in price reductions.
