Villa Garda II, phase 11C at Lohas Park in Tseung Kwan O, sold 124 out of 168 apartments as of 2pm yesterday afternoon.
The project as well as the first phase, which are both co-developed by Sino Land (0083), K Wah International (0173) and China Merchants Land (0978), sold 592 apartments, or 92% of the total, raking in more than HK$5 billion.
It came as increased supply of flats prompted landlords to cut rents to attract tenants, with some seeing rental yields drop to 1.6% at Ocean Marini in Lohas Park.
The rent for an 813-square-foot three-bedroom unit at Ocean Marini 1A has been reduced to HK$23,500 per month, a reduction of HK$2,500 or 9.6%, or 28.9 yuan per square foot , according to Midland.
The landlord bought the apartment in April 2021 for HK$14.1 million, the agent said. The yield was around 2% based on the current rent, but if the landlord pays the management fee, the yield drops to around 1.6%, the agent added.
In the secondary market, seven transactions were recorded in 10 prime developments, according to Centaline Property Agency, a drop of 12% compared to the previous week.
Even though the market is worried about rising U.S. interest rates at the end of this month, housing demand remains strong, said Louis Chan Wing-kit, vice president Asia-Pacific for the residential division, adding as price reductions in the secondary market attracted buyers to enter the market.
Rival Midland Realty recorded eight deals in 10 major subdivisions it tracks on the secondary market over the weekend, down 11% from the previous weekend.