Developers sweeten property packages in bid to dispose stock

One developer has included a high-speed rail holiday in its apartment package.

Bloomberg reports that Hong Kong’s real estate developers have been rolling out a number of lifestyle incentives for their properties for sale in a bid to rapidly dispose off their stock and avoid the claws of the government's vacancy tax. 

CK Asset Holdings Ltd is giving away high-speed rail holiday and travel packages, including accommodation for people who agree to purchase a four-bedroom units at its recent development in Hong Kong west whilst Kerry Properties is allowing buyers to move in to their Mantin Heights project in Kowloon after shelling out only a 10% deposit.

"Developers are offering these incentives particularly for the projects they’re not confident in,” said Patrick Wong, a property analyst at Bloomberg Intelligence. “Projects with poor public transportation access, for example.”

The move comes after the government unveiled a tax on units that have not been occupied or rented out for more than half of the past 12 months which is roughly equal to 5% of the property value, putting developers at risk of additional costs if it fails to dispose of its units fast enough.

Also read: Vacancy tax to dampen developers' land bidding

A number of developers have even resorted to slashing their selling prices with Paliburg Holdings and Regal International trimming as much as $10m off the selling price of one of their 12 unsold Yuen Long villas to $29.4m. Another private developer owned by Kwok Kwei-wo and Tang Yuk-kwei have also discounted two units of their village houses in Yuen Long by about 20% after holding on to the units for two years.

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