Pak Shing Kok project may presell from 2028
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
New World Development and China Merchants Land recently broke ground on a joint residential project in Pak Shing Kok, Tseung Kwan O, with surveyors saying presales could start as early as the second half of 2028. Market observers said pricing pressure may be lighter by then if home prices recover to 2022 levels, when the consortium won the site. Two surveyors separately estimated the project could sell for about HK$18,000 per square foot of saleable area. The tender terms also require each flat to have a usable floor area of at least 280 square feet, setting a floor for unit sizing
Key Points
- James KT Cheung of Centaline Surveyors said current home prices remain below 2022 levels, when the consortium secured the Pak Shing Kok project site
- Cheung said a land premium of about HK$3,800 per square foot of gross floor area was not particularly expensive versus recent land acquisitions
- Alex Leung of CHFT Advisory and Appraisal estimated total project cost at HK$4,734 per square foot, including the land premium and HK$50 million entrance fee
- Both Cheung and Leung said the development could be sold at about HK$18,000 per square foot of saleable area when launched
- Leung said the smallest 280-square-foot flat on a lower floor with weaker views could start at about HK$4.6 million, or HK$16,400 per square foot
Why It Matters
The project offers an early indication of how developers and surveyors are positioning future launches in Tseung Kwan O after a period of weaker home prices. If presales do begin in 2028 and pricing reaches the levels now projected, the development could become a reference point for how quickly market conditions have improved from current levels