New World Development's Kingswood residential project had an electrifying debut, as it launched 168 units for sale on February 15, 2023, and immediately became the center of attention with over 7,800 applications received. The demand was so intense it resulted in the project being oversubscribed by more than 45 times, signaling strong interest among potential buyers.
According to Chan Wing Kit, the Asia Pacific vice-chairman and residential president of Centaline Property, the attractive pricing of the Kingswood project played a pivotal role in drawing such overwhelming public interest. This ambitious project marks the first significant launch of the year and reflects the growing confidence among buyers within the Hong Kong property market.
The units sold at Kingswood ranged from 321 to 726 square feet, with the price list set between HKD 7.764 million and HKD 26.144 million. After applying the maximum discount of 22 percent, the effective prices ranged from approximately HKD 6.055 million to HKD 20.392 million, translating to square-foot prices from HKD 16,888 to HKD 28,088. Notably, the average price per square foot was reported at around HKD 18,941, marking one of the most competitive rates for new developments seen over the last eight years.
This phenomenal response at Kingswood bodes well for New World Development, which is actively seeking to revitalizing the current sluggish property market. Chan emphasized the likelihood of additional launches from the developer, which would potentially carry forward this momentum.
Demographically, over half of the interest came from local buyers, including several high-net-worth individuals, who were attracted to these units both for personal residence and as investments. Further illustrating the project's appeal, Chan mentioned predictions about prospective rental returns. Rentals for the area are expected to reach HKD 80 per square foot, leading to anticipated yields of up to 5-6 percent—factors which should entice many investment-minded buyers.
The Kingswood project successfully drew attention not just for its pricing attractiveness but also due to its strategic location, adjacent to various amenities which are beneficial for residents and renters alike. Real estate experts continue to monitor sales performance closely, as they believe this rebound is indicative of broader trends within the property sector.
The Hong Kong property market seems to be making incremental gains, with observance of positive buyer sentiment. Recently, several agents reported heightened activity levels, indicating potential recoveries across different segments of the market.
Reflecting on the successes of Kingswood, experts opine this could mark the beginning of another active year for property sales, with developers set to tap back the recovering interest among buyers. With New World Development planning to follow up with more launches, property analysts remain optimistic about revitalizing market conditions.