Hong Kong’s SHKP sells 128 Sierra Sea flats ahead of possible US rate increase

Sun Hung Kai Properties (SHKP), one of Hong Kong’s largest developers, has sold out the latest batch of flats at its Sierra Sea project in the New Territories, where units were offered at discounted prices ahead of a possible US Federal Reserve interest-rate increase by year-end.

By 5.40pm on Wednesday, SHKP had found buyers for all 128 flats offered at listed prices in Phase 2C(2) of the development in Shap Sze Heung, between Sai Kung and Ma On Shan, according to agents. Sales began at 2pm.

“Developers will continue to launch new flats in an orderly and steady cadence in the coming weeks,” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties.

“Strong sales results in mid-October and recent sales brochure releases confirm that developers are capitalising on current buyer demand to roll out their pipeline systematically.”

SHKP sold all 142 flats offered at Sierra Sea in a separate batch on Saturday.

Alongside Wednesday’s 128 flats offered at listed prices, SHKP made another 24 available by tender, with a further 19 flats to be offered by tender from Saturday. The latest batch includes two- and three-bedroom units ranging from 418 to 679 square feet (38.83 to 63.08 square metres).

The flats offered at listed prices sold at discounted rates starting at HK$12,714 (US$1,620) per square foot, with individual units costing about HK$5.47 million to HK$9.87 million.

Centaline Property Agency said long-term investors accounted for 60 per cent of its clients buying flats on Wednesday.

“Centaline recorded more than 10 groups of buyers intending to purchase more than two units, with the largest bulk buyer planning to spend nearly HK$30 million to acquire four units for rental investment purposes,” said Louis Chan, Asia-Pacific vice-chairman and CEO of the property agency’s residential division.

Chan said the prospect of the US Federal Reserve raising interest rates in the coming weeks or months had encouraged developers to fast-track launches.

“It is expected that primary market transactions this month could top 2,000 or even reach 2,200 units, hitting a six-month high,” he added.