Here's a look at Kerry Properties' Bayview Project

Average price is HKD16,100/sq ft.

According to Maybank Kim Eng, Kerry Properties' Bayview Project is set to launch on Saturday. 

The developer had previously guided that it would only launch when it received the certificate of compliance (which it recently did) and that it was targeting a 1H13 launch, hence this launch is on schedule.

This is one of the few brand new launches following the changes to The Residential Properties (First-hand Sales) Ordinance which came fully in effect on 29 April.

Here's more:

A small-sized single building project with 175 units in total. The project  offers 175 units and 40 carparks, with total saleable floor area of 125,144 sq ft. 165 units are on typical floors (7-46/F); 10 special units are located on the 6/F (with flat roofs) and 47-48/F (with larger sizes).

General unit sizes are comparable to developments in the vicinity and range from 508 sq ft to 890 sq ft for typical floors.

We believe its construction quality is good for a To Kwa Wan project. We expect that the units facing the Lee Yue Mun harbour will have a permanent sea view given that reclamation or redevelopment of the public space in front of the project is unlikely.

However, the city view may be blocked if some currently idle sites are redeveloped in the future.

We expect Bayview to be 20 minutes’ walk from a light rail station connecting to Kai Tak, and about 10 minutes’ walk to Ma Tau Wai Station (expected to open in 2018).

Two price lists with 80 units have been published so far with somewhat aggressive pricing, in our view but seaview units should achieve good salethrough. Kerry posted two price lists on its website on 21 and 25 June, with prices for 50 and 30 units, respectively.

We note that the average offer price was HKD16,100/sq ft (saleable area), with a range from about HKD13,000/sq ft for lower floors with city views to as high as about HKD17,500/ sq ft for higher floors for units with open sea views of Lee Yue Mun.

If Kerry were to launch its first price list of 50 units on Saturday, we expect takeup of 70% or more given the price list’s seaview-focused offerings. There is also flexibility for Kerry to launch the second list of units.

It is estimated that if all 80 units are sold, the total sales amount will be approximately HKD906m (disregarding the 3% discount provided for lump-sum payment buyers who can complete the transaction within 90 days).

If all 175 units are sold, we estimate sales proceeds would total HKD1.8-1.9b. The first batch of units generally have better views. 56 of the first 80 units face Lee Yue Mun and have an open sea view, leading to high ASPs.

However, we still feel the offer price is a bit aggressive compared to the current HKD12,500/sq ft ASP of two major residential developments nearby, i.e. Grand Waterfront and Sky Tower, aged 7 and 9 years respectively. Bayview’s pricing represents about a 15-25% premium to existing estates in the To Kwa Wan district.