Henderson Land Development on Monday released an additional 39 units at its Chester project in Hung Hom, with 25 sold, according to property agents, as reported by South China Morning Post.
The flats carried an average discounted price of HKD22,198 (US$2,831) per square foot, almost 4.6% higher than the 123 units that sold out in the debut of the project at the end of last month.
“With demand holding steady, we expect developers to gently push prices upwards in new sales launches, rather than resorting to deep discounts again,” said Derek Chan Hoi-chiu, head of research at real estate agency Ricacorp Properties.
“This is a classic recovery-phase strategy: testing price elasticity without undermining the building momentum.”
Elsewhere, the La Mirabelle I project in Tseung Kwan O will release another 254 units on Tuesday.
The flats, priced between HKD5.93 million and HKD8.99 million after discount, are about 1% more expensive than those offered in the previous batch a week earlier. The earlier release of 254 units sold out within hours.
These moves signal that developers in Hong Kong are testing market demand despite uncertainties.
The Hong Kong Monetary Authority has warned borrowers about the uncertain outlook for interest rates after the U.S. Federal Reserve last month kept its benchmark rate unchanged at between 3.5% and 3.75%.
At the same time, disruptions to oil supply stemming from the U.S.-Israel war involving Iran have driven crude prices sharply higher, fueling concerns that tighter monetary policy could follow in the world’s largest economy.
Any increase in interest rates would likely dampen both transaction volumes and residential property prices, according to Chicago-based financial services firm Morningstar.
The market, however, seems to indicate positive signals. Hong Kong’s home sales jumped by 42.2% year-on-year to HKD55.2 billion in value in March, official data showed, as reported by The Standard.
The number of residential property sale and purchase agreements registered last month rose 17.7% to 6,316, based on Land Registry figures.
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