Hong Kong Developers Resort to 2016 Pricing Amid Market Struggles: A Deep Dive into the Echo House Project and the State of the Housing Market

Hong Kong property developers are setting the price for Cheung Sha Wan apartments at the same rates as in 2016, due to a lack of recovery in the market. Martin Wong from Knight Frank states that developers continue to provide discounts because the buying power in the market hasn't sufficiently improved.

According to Helen Fung, the sales director, a private developer is planning to sell 50 out of the 198 units at an average price of US$1,917 per square foot post-discount. This is the least expensive rate in the area since Henderson Land sold its Park One project for US$1,673 per square foot in 2016, as per data gathered by Midland Realty.

"Considering the current price of Echo House in Cheung Sha Wan is at its lowest in eight years, we anticipate a robust market reaction," stated Fung, while clarifying that a definite launch date hasn't been set. "The advantageous position and top-notch development significantly boost our optimistic sales projections."

Chinachem, overseen by the late billionaire Nina Wang's estate, is collaborating with the Urban Renewal Authority to create the Echo House project. This development will feature one to three-bedroom apartments. Typically, purchasers could avail discounts ranging from 13% to 20% on newly launched projects, as per data from Midland.

"The price reduction is fair, averaging around 16.8 per cent," stated Sammy Po Siu-ming, the Residential Division's CEO at Midland. "There's a scramble among developers to initiate new schemes, resulting in an influx of new home availability."

Chinachem isn't the only one cutting costs, with companies like New World Development and Far East Consortium also reducing prices to the lowest they've been in years. This downward trend implies that Hong Kong's efforts this year, particularly lifting market restrictions in February, have failed to halt the decline in the real estate market.