CK Asset Holdings Ltd. is selling its latest residential project in Hong Kong at the lowest price in seven years to attract customers in a market hobbled by expensive borrowing costs.
The average sale price for the Coast Line II project in the Yau Tong area is HK$14,997 ($1,921) per square foot after a discount, the cheapest unit price among all new projects in urban districts since 2016, according to Bloomberg Intelligence.
“The Coast Line II sale price is very attractive,” Chairman Victor Li said on an earnings call with analysts on Thursday. “It’s basically selling at the price seven years ago.” The company generally likes to set prices at, or lower than, the market level to generate turnover, he added.
CK Asset’s property sales in the city slumped 66% in the first half from a year earlier, while its net income dropped 20%. Profit may fall in the second half on lower sales being recognized during the period, BI wrote in a note.
Higher interest rates have weighed on the residential market, with secondary home prices dropping to February levels after a brief recovery. New home transactions by value fell 38% in July from a month earlier to the lowest in six months, data from Centaline Property Agency Ltd. show.
