New Tai Wai project subscribers will eye on upcoming projects in Shatin
Over 1,531 new flats in the pipeline for launch
HONG KONG, 5 November 2020 – While The Pavilia Farm recorded overwhelming subscriptions for the launch of Phase 1, subscribers are not expected to shift to the secondary market but to other new projects in the vicinity with a total of 1,531 units, according to JLL’s Residential Market Monitor, released today.
All the 769 units launched at the Phase 1 of The Pavilia Farm, jointly developed by New World Development and MTR Corporation, were sold in two weeks since its launch on 17 October. The project attracted around 22,700 registers of intent for the first round of sales (391 units). Even discounting some 3,000 ‘Group A’ subscriptions (considered investors), the remaining subscriptions are still 9 times more than the 2,198 units with pre-sale consent already issued.
Norry Lee, Senior Director of Capital Markets at JLL in Hong Kong, says: “We do not expect a large number of subscribers to move to the secondary market. First, there are still close to 2,200 units in Phase 2 and 3; second, primary market buyers usually prefer new facilities and may not require immediate accommodation; and third, buyers who are less financially flexible may be more inclined to buy primary units for a higher chance of loan approval or developer financing.”
Nelson Wong, Head of Research at JLL in Greater China, says: “In fact, we think these subscribers might shift their attention to other upcoming large-scale projects in the vicinity, such as Shenzhen Centralcon’s 1 Au Pui Wan Street Project in Fo Tan and Sun Hung Kai Properties’ St Michel (Phase 1) in Shatin, which both are expected to be completed by 2022, same as ‘Pavilia Farm (Phase 1 & 2).”
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