Hong Kong developers sold more than 360 residential units in a single weekend after cutting launch prices below secondary market alternatives.

Sun Hung Kai Properties cleared all 142 units at its Sierra Sea Phase 2C(2) project in Shap Sze Heung on Saturday, while Yuexiu Property found buyers for all 220 price-listed units at The Atlas Phase 1 in Yau Tong.

Developers secured the sales by pricing directly against older housing stock. SHKP offered its initial batch of two- and three-bedroom flats, measuring 418 to 679 square feet, at entry prices starting from HK$5.38 million. Yuexiu priced one- and two-bedroom units between 285 and 510 square feet at discounted rates starting from HK$13,038 per square foot.

Both builders replenished supply immediately following the weekend clearance. SHKP scheduled a second tranche of 152 flats for sale on Wednesday, placing 128 units on a regular price list between HK$5.47 million and HK$9.87 million and releasing 24 units through tender. Yuexiu scheduled 132 units for regular sale on the following Saturday, with unit sizes ranging from 278 to 497 square feet.

Heavy discounting in the primary market leaves secondary homeowners with few options. Individual sellers who bought during previous market peaks cannot match the payment terms, buyer rebates and stamp-duty incentives offered by major developers. Until secondary sellers absorb equivalent valuation haircuts, transaction volumes in the second-hand market will stay depressed.

For developers, holding balance sheets steady takes precedence over defending unit profit margins. Maintaining rapid cash turnover protects cash flow against elevated borrowing costs and lingering debt commitments, forcing rival builders to follow the same discounting playbook.

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