Published Sun, Jun 15, 2025 · 03:24 PM
New World Development and its partners sold 138 apartments in a few hours at a new project after pricing the homes at a discount to lure buyers in Hong Kong’s sluggish real estate market.
The companies sold the apartments in Deep Water Pavilia in southern Hong Kong Island on Saturday (Jun 14) within a few hours, according to New World. The homes were the cheapest of any new residential project in the Southside area. The low price, coupled with declining interest rates, have attracted homebuyers while bringing much-needed cash to the embattled developer.
Successful sales of residential projects are crucial for New World as it races to raise cash to improve its liquidity. The group faces increasing pressure to repay loans if it can’t work out a deal with banks to refinance HK$87.5 billion (S$14.3 billion) of its borrowings by the end of this month, Bloomberg reported earlier. It has pledged around 40 properties as collateral, including its trophy asset, the commercial complex at Victoria Dockside.
Empire Group, CSI Properties, Lai Sun Development and MTR developed the project with New World.
Falling interest rates have given a lift to the city’s residential sales in recent weeks. The one-month Hong Kong Interbank Offered Rate is hovering at the lowest level in three years. However, pressure remains in the property market due to high inventory of units and growing economic uncertainty amid the trade war, according to analysts at DBS Group including Jeff Yau. The bank expects home prices in Hong Kong to fall 5 per cent in 2025. BLOOMBERG
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