Sun Hung Kai Properties Ltd., Hong Kong’s second-largest developer by market value, cut prices by 40 percent on average for some apartments at its Riva project in the city’s northwestern Yuen Long district, a move that may spur a price war, the Standard reported today.
London’s housing market is beginning to show “bubble-like conditions” as overseas investors bid up prices and buyers take on more debt to purchase properties, according to a report today by the EY Item Club.
Developers in Singapore and Hong Kong, cities which last year implemented some of their most- restrictive curbs to rein in residential property prices, are shifting focus to the U.S., China and the U.K. as demand is stifled at home.
Hong Kong Chief Executive Leung Chun-ying pledged to give assistance to poorer families and overcome the challenge of building more homes as he seeks to quell popular discontent over a record wealth gap.
Hong Kong dwellings from one-bedroom apartments to 5,000 square-foot (465 square-meter) houses are on offer at discounts of as much as 20 percent as developers brace for a plunge in prices, which have more than doubled since 2009.
Chu Kin-lan has already shuttered six of 11 offices of her Hong Kong real estate agency, whose Chinese name translates as Precious Prosperity, and let go half of her 70 employees amid the city’s toughest curbs on home buying in its history. The worst pain may be still to come.