Primary volume bounces back to 566 units in mid-November

Upcoming launch pipeline looks increasingly competitive.

Both Capri and Bloomsway launched their initial sale over the weekend and contributed to the majority of the weekend sales.

According to a research note from Barclays, Capri sold 301 units out of 308 units being offered, representing a good initial take-up rate of 98%. As Capri only has a total of 428 units, it has already sold 72% of the project.

Meanwhile, Bloomsway sold 223 units out of 333 available units, representing a lower take-up rate of 67%. Kerry Properties aims to sell 500 Bloomsway apartments in 2015, which is 45% of the total 1,100 units. It will only launch the houses after they are completed. In total, Capri and Bloomsway sold 524 units over the weekend.

Adding to that, there were also 24 units sold from Double Cove Starview Prime, five units from Homantin Hillside, three units from Double Cove Grandview and 10 more inventory units from various projects.

In aggregate, primary volume rebounded to 566 units over the past weekend due to the two large-scale launches. This was almost three times higher than the average of 145 units over the preceding four weekends.

Here's more from Barclays:

Apart from the weekend sales, there was also one notable transaction during the week, which was the sale of one house at 28 Barker Road at HK$95,088psf. This came shortly after a house from the same project was sold at HK$101,809psf on 3 November. 28 Barker Road is now completely sold out. The upcoming launch pipeline looks increasingly competitive with developers heating up their launch preparation. There are four private residential projects all expected to be launched within November, as well as URA’s subsidised De Novo project which is expected to launch the application process by the end of 2015.

Kowloon Development released the first price list for South Coast on 10 November. It is a small 150-unit project in Aberdeen. The blended ASP for 30 units is HK$17,749psf. The project is much more expensive than the secondary market if we use South Horizon (HK$13,864psf) in the nearby Ap Lei Chau as an example. The developer provides 90% LTV primary mortgage plan at an interest rate of P-3.1% for the first three years and at Prime rate thereafter (P as 5.25%).

Henderson Land also released the first price list of The Zutten in Ma Tau Kok on 14 November. 68 units were priced at a blended ASP of HK$15,523psf net of all discounts.

Compared to Sky Tower (HK$14,411psf) and Grand Waterfront (HK$14,767psf), the project is 5-7% more expensive. The project provides 300 units with a 25/75 mix of studio and one-bedroom units. Henderson Land provides 85% LTV primary mortgage plan at an interest rate of P-2% p.a. for the first three years and at Prime rate thereafter (P as 5%). • Cheung Kong Property’s 1,129-unit Yuccie Square aims to release its price list this week. The project is located in the town centre of Yuen Long. Cheung Kong stated that it would launch two-bedroom and three-bedroom units in the first round.

SHKP’s 1,027-unit Park Vista has just obtained the presale consent and may be launched within November. Similar to Yuccie Square, the project is also located in Yuen Long and it is opposite to SHKP’s Riva project across the Kam Tin River. The project is divided into three sub-phases (1A 362 units, 1B 499 units and 1C 166 units). It offers a diversified mix of unit layouts ranging from studio units to three-bedroom units.

The Urban Renewal Authority may launch its subsidised housing project De Novo in Kai Tak in December. De Novo has 484 units in total of which 338 units will be up for public sale while the remaining will be reserved for unit-for-unit swap for URA’s redevelopment projects. HKET reported that the URA may set De Novo’s ASP at HK$11,000psf, some 20% below nearby private development. De Novo will only be eligible for Hong Kong local firsttime homebuyers who make less than HK$60,000/month and own less than HK$3mn assets.