Hong Kong homebuyers snap up units at The Sterling as value-focused demand deepens

Hong Kong homebuyers have shown a strong appetite for affordable, value-focused properties, as evidenced by the complete sale of 180 units in China Resources Land's The Sterling development in Kowloon. The project, located near Nam Cheong station, garnered an impressive 46,000 subscriptions, or 254 times the available units, setting a new record for first-round subscriptions at a Hong Kong residential launch.

Industry experts attribute this surge to the combination of the project's strategic location, competitive pricing, and strong rental demand.

The Sterling's first price-list batch was offered at an average discounted price of around HK$17,880 (US$2,280) per square foot, roughly 27% to 33% below the opening prices of nearby projects introduced in 2021. This pricing strategy proved especially appealing given that some northern New Territories developments have been priced similarly.

As the market emerges from a sharp slowdown earlier this summer, developers are reportedly entering what agents are calling a new-home sales battle. Hong Kong's first-hand private home sales have risen to 642 units in August, representing a 17.2% increase from July, though transaction values remain 40% lower due to the absence of high-value deals.