SHKP Launches SIERRA SEA Phase 2A with Competitive Pricing Strategy

A Fresh Opportunity in Sai Sha

Sun Hung Kai Properties (0016) has generated fresh buzz in the local real estate sector today by unveiling the first price list for Phase 2A of their residential project, SIERRA SEA. The developer has set the average discounted price per square foot at HK$10,968, representing a modest 3.1% increase compared to the HK$10,638 price point seen in Phase 1B. Market observers are reacting positively, with Centaline Property describing the pricing strategy as reasonable and forecasting that the entire initial batch of units will be snapped up on the very first day of sales.

Detailed Breakdown of the Offer

For this latest launch, the developer is putting 148 units on the market, designed to cater to a variety of household needs with layouts ranging from one-bedroom to three-bedroom apartments. The selection is dominated by two-bedroom units, which account for 122 of the homes, alongside 5 one-bedroom units and 21 three-bedroom residences, with practical areas spanning 297 to 700 square feet. After applicable discounts, the net prices for these homes sit between HK$3.435 million and just over HK$8.318 million, translating to a per-square-foot cost ranging from HK$10,018 to HK$13,776.

Concrete Pricing Examples

To give potential buyers a clearer picture, the entry-level unit is a one-bedroom apartment located at Flat G on the G2 floor of Tower 1, offering 297 square feet for a discounted lump sum of HK$3.435 million, or HK$11,566 per square foot. For those needing more space, a two-bedroom unit at Flat A, 2nd Floor of Tower 1 (Coral Avenue) with 469 square feet has a list price of HK$5.555 million, which comes down to a net HK$4.7217 million—a competitive HK$10,068 per square foot. Meanwhile, a larger three-bedroom home at Flat A, 3rd Floor of Tower 3 (Coral Avenue), covering 700 square feet, is priced at HK$7.4885 million after discounts, working out to HK$10,698 per square foot.

Developer and Agent Perspectives

Victor Lui, Deputy Managing Director of SHKP, has branded this initial price list as a "Dream Come True Price." He explained that while there has been a slight upward adjustment, it is justified given that recent secondary market transactions for SIERRA SEA have shown a profit margin or "water level" of about 10%. Despite this minor hike, Lui remains confident that the project offers exceptional value that will continue to attract eager homebuyers.

Investment Potential and Outlook

Industry experts are equally optimistic about the project's prospects. Sammy Po, Senior Director at Midland Realty, noted that the opening prices offer a discount compared to nearby developments and Phase 1 listings, creating a compelling entry point. With current rental rates hovering between HK$40 and HK$47 per square foot, he estimates a rental yield of 4% or higher, predicting that investors will comprise around 30% of the buyer demographic.

Louis Chan, Vice Chairman of Asia Pacific at Centaline Property, echoed this sentiment, praising the restrained pricing which is only about 3% higher than the previous batch, whereas the Centaline City Leading Index has risen by over 4% this year. Looking further ahead, Chan predicts a "Small Spring" rebound in the market before the Lunar New Year in February. Driven by stabilizing Sino-US relations, expected US interest rate cuts, and a robust stock market effect, he anticipates property prices could climb by approximately 15% next year.