CK Asset pauses Hong Kong sales launch at Yuen Long’s Montage development

CK Asset Holdings has suspended sales at its Yuen Long residential project Montage, days before it planned to begin marketing the development’s first homes.

The developer confirmed the suspension to the South China Morning Post but declined to explain the abrupt decision, saying only that it reserved the right to pause or commence sales at any time. It dismissed market speculation that the government had revoked the project’s presale consent as baseless.

The move followed Moni Yeung, deputy chief manager of sales at Cheung Kong Property Holdings, saying on Monday that the company planned to release sales arrangements for at least 66 houses as early as this week. The sales gallery was expected to open the following week.

The low-density development at 18 Kam Tai Road in Kam Tin, Yuen Long, was officially named Montage on October 13, as CK Asset stepped up promotion ahead of its planned launch.

Centaline Property, which opened a flagship shop in Yuen Long on Monday to promote the project, said CK Asset had informed it on Wednesday to stop marketing the development.

A source familiar with the matter said CK Asset needed to amend the project’s land lease documents in consultation with the government, a process that could take about a month.

All sales activities, including a VIP event scheduled for Friday, had been halted, the source said, adding that sales could resume as early as December once the amendments were completed.

Montage received presale consent from the Lands Department in June. The development comprises 327 homes, including 242 flats and 85 houses, with its sales brochure uploaded last week.

The project has attracted attention for its two-bedroom houses, the smallest measuring just 497 square feet of saleable area. That could make them the smallest houses offered since Hong Kong introduced its first-hand residential property sales regime in 2013.

Located near Kam Sheung Road station, Montage is expected to benefit from the government’s Northern Metropolis development plan, with the station set to become a transit point connecting to the Northern Link.

The suspension comes amid broader scrutiny of construction quality at projects involving CK Asset’s contractors. Its Starter Homes development on Anderson Road in Kwun Tong became embroiled in a building scandal after serious discrepancies were found between steel reinforcement work and approved plans. Three of the project’s six residential blocks are to be demolished and rebuilt.

CK Asset replaced Superb Interior Contracting Company, the contractor involved in that case. However, the company remains listed as the contractor for Montage in the project’s sales brochure.

The Lands Department said it would assess whether developers complied with the conditions of their presale consent and consider appropriate action, including suspension or revocation where necessary.

The Buildings Department said repeated surprise inspections at the relevant sites had found no obvious discrepancies with approved plans.