CK Asset Prices Blue Coast II Flats Below Development Cost Amid Market Optimism

Blue Coast II, a property in Wong Chuk Hang developed by CK Asset, a Hong Kong-based company, is being priced 20% lower than its development cost. The first set of apartments from the firm, owned by Li Ka-shing, have been given an average price tag of HK$21,526 per square foot, which is less than the HK$28,000 cost it took to develop each square foot.

CK Asset Holdings' rates for a new set of apartments on the southern part of Hong Kong Island are almost identical to the last phase, even though they anticipate a surge in property prices shortly.

The premier developer of Li Ka-shing has set the cost for the initial 128 units at Blue Coast II in Wong Chuk Hang at an average of HK$21,526 (US$2,770) per square foot, which is 2% less than the price of the first 138 units of the project's first phase in March. The developer has not yet disclosed a release date.

"Justin Chiu Kwok-hung, the executive director, stated on Wednesday that the initial pricing list aligns with the group's past approach of providing a specific discount."

Earlier, CK Asset declared that the construction cost of the project was roughly HK$28,000 per square foot, however, the selling price was over 20 per cent less.

Chiu mentioned that as more units hit the market, the cost will go up. He further stated that in light of the positive market mood sparked by the commencement of a cycle of interest-rate reductions, there's not much incentive for developers to keep providing discounts.

"Chiu has reported that so far this year, real estate values have decreased approximately 7 per cent, but a 3 per cent upswing is anticipated in the coming two months," he said. Despite a predicted recovery, he emphasized that the total annual prices are likely to be marginally lower and asserted that the housing market will regain its balance.