Hong Kong developers scramble to clear old inventories

95 units were cleared.

According to Nomura, with the new Residential Properties (First-hand Sales) Ordinance taking effect today, it was the final sprint for developers to clear old inventories over the past weekend.

With price discounts and other incentives, a total of 95 units were cleared by developers this past weekend, up 56% w-w. The majority of primary weekend sales were still existing projects and small-scaled urban redevelopment projects.

Here's more from Nomura:

Notable sales included 19 units at NWD’s The Riverpark in Shatin, 13 units at NWD/HLD’s The Reach in Yuen Long and 13 units at Kerry’s Lions Rise in Wong Tai Sin.

Looking ahead, the units to offer for sale were limited after the new rules take effect. So far, only Swire Properties’ Dunbar Place in Homantin and HK Ferry’s Green Code in Fanling have submitted new sales brochures and price lists under the regulations.

The price list of the first batch 30 units at Dunbar Place (57% of entire 53 units) were released with an average price of HKD20,869psf (SFA).

The batch is expected to be offered for sale this week. The development is slated for completion by the first half of 2014.

For Green Code, with the price list of 146 units (20% of entire 728 units) released last week, those units will be offered for sale today with an average price of HKD9,350psf (SFA).