Hong Kong homebuyers snap up units at The Sterling as value-focused demand deepens

The Sterling residential development drew 46,000-plus subscriptions, highlighting appeal of urban locations with strong transport links as housing recovery matures

Hong Kong homebuyers are still willing to spend, and the sell-out of a major new development on Saturday showed how demand is increasingly concentrated in projects that offer clear value as the housing recovery enters a more mature phase.

China Resources Land’s The Sterling in southwestern Kowloon, in Cheung Sha Wan , sold all 180 units offered in its first price-list batch, generating nearly HK$1.6 billion (US$204 million). The project received more than 46,000 subscriptions, or more than 254 times the number of units available, setting a record for first-round subscriptions at a Hong Kong first-hand residential project.

The response was driven by the project’s urban location and competitive pricing, rather than a broad return to aggressive buying, according to industry insiders. The project is close to Nam Cheong station, making it a relatively rare large-scale new development in the city area.

“The response is part of a broader pattern,” said Roy Ng, head of research at consultancy Newmark. The strong response reflected demand for new, premium stock with good transport connectivity and competitive pricing, he added.

The first batch was offered at an average discounted price of about HK$17,880 (US$2,280) per square foot, roughly 27 per cent to 33 per cent below the opening prices of nearby projects launched in 2021.

That discounted pricing became particularly compelling because some new developments in the northern New Territories have been marketed at similar levels.