All 138 units in the Wong Chuk Hang neighborhood were sold within just seven hours of their launch on Saturday morning, raising a staggering HK$1.53 billion (US$196 million), as reported by property agents in the South China Morning Post.
The new apartments, which feature two to four bedrooms, were priced between HK$8.5 million and HK$37.2 million each. This pricing resulted in an average cost of approximately HK$21,000 per square foot (US$28,800 per square meter)—a remarkable record low for new homes in the area, according to Bloomberg. This price point was about 4.5% less than that of CK Asset Holdings’ Blue Coast project, which ignited a buying spree in the same locale last year.
In a splendid turn of events, Deep Water Pavilia was developed by New World, the flagship real estate company of the billionaire Cheng family and one of Hong Kong’s “big four” developers, alongside Empire Group Holdings, CSI Properties, Lai Sun Development, and MTR Corporation.
Louis Chan Wing-kit, the CEO of Centaline Property Agency, noted that the project has attracted both end-users and investors alike, thanks to its competitive pricing and prime location directly above a mass transit railway station. The allure was further cemented by the fact that around 40% of buyers were investors seeking rental income, a reflection of current market trends, as reported by Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau.
The robust sales are a welcome financial boost for New World, which has been facing rising financial pressures. Just weeks prior, in late May, the developer announced it would defer US$77.2 million in coupon payments on four perpetual bonds due that month. New World became the second Hong Kong property firm to take such a step in recent years, highlighting the ongoing struggles within the city’s property market plagued by price declines, sluggish sales, and high-interest rates.
New World faces significant challenges, holding one of the highest debt ratios among its competitors. The company is under increasing pressure to manage its HK$87.5 billion in borrowings, especially after pledging around 40 properties—including its flagship commercial complex at Victoria Dockside—as collateral.
Amidst these financial challenges, the Cheng family—Hong Kong’s third-richest clan with an estimated fortune of US$19.5 billion according to Forbes—finds itself navigating complex succession issues. The group underwent two CEO changes last year following a record HK$19.7 billion loss for the fiscal year ending June 2024, with Adrien Cheng, once seen as the heir apparent, stepping down. His successor lasted only two months, leaving many eyebrows raised about the family’s leadership stability.
With these developments unfolding, it seems that the property’s rapid turnover is not just a fleeting trend, but perhaps the beginning of a new era in the Hong Kong real estate landscape.
What types of apartments were sold in Wong Chuk Hang?
The sold apartments ranged from two to four bedrooms.
How much money did New World raise from the sales?
New World raised a total of HK$1.53 billion (US$196 million) from the sale of the 138 units.
What financial challenges is New World facing?
New World is dealing with high debts, including HK$87.5 billion in borrowings, and has deferred coupon payments on bonds amid a struggling property market.
